FOREIGN TRADE UNIVERSITY

91 Chua Lang Street, Dong Da District

Hanoi, Vietnam

Tel: 84-4-3835 6800 – Ext: 555

http://www.ftu.edu.vn Faculty of English For Specific Purposes

ENGLISH FOR ACCOUNTING AND AUDITING

HANOI, 2019
 TO THE STUDENT

Englishfor Specific Purposes- ACCOUNTING AND AUDITING has been

specifically developed for people working in the field of accounting and auditing
who need English to communicate in a variety of situations with colleagues and
business partners.

The book has been divided into fifteen units, each dealing with a different area of
accounting and auditing. The first unit is an introduction to general accountancy
terms and concepts. The second and third units discuss about different careers in the
sphere of accounting. The other eleven units deal with important topics areas in the
field of financial accounting, management accounting and auditing including
bookkeeping, the principles and standards of accounting, costing, financial
statements, international accounting, depreciation and amortization, auditing etc. The
last unit is about the future of accounting.

Each unit has six parts i.e. Reading, Vocabulary, Discussion, Practices,
Translation and Writing which are designed to help you enhance vocabulary and
communicate more effectively and confidently when studying and working in
English in the field of accounting and auditing.

Vocabulary is an important part of language learning and this book will help you to
develop your specialist vocabulary. When you are learning vocabulary, notice how
words are used (grammar) and when they are used (context). Decide whether you
only need to recognize certain items of vocabulary or whether you will actually need
to use the words yourself at a later date. If you need to use words yourself, it is useful
to practice making sentences of your own using the new words. The practices in this
book provide a structured and systematic way for you to check what you already
know and to increase your knowledge of new concepts and terms.

1
 COURSE INTRODUCTION
Course Name: ESP for ACCOUNTING AND AUDITING
Lecturer Meeting schedule
Lecture’s name: …………………………… Day:………………………..
Email: ……………………………………… Time: ………………………
Phone: …………………………………….. Room: ……………………..

Course Description:

The course designed to meet the need of students majoring in Accounting and
Auditing will provide students with knowledge related vocabulary and help them
gain language skills so that they are able to read specialized news and articles, write
essays or reports and make presentation in the field of Accounting and Auditing in
English. The language skills and vocabulary gained in the course will help them
build up confidence in using English in their professional jobs in the future.

Learning Outcomes:

At the end of this course, the student will be able to:

Improve the knowledge of accountancy and auditing terms in English

Enhance the four integrated skills in the field of accounting and auditing
Have a good attitude towards learning ESP

Grading Procedure:
Participation & Attendance 10%

Presentation 10%

Midterm Exam 20%

Final exam 60%

TOTAL 100%

Note: Participation & Attendance(10%) Class participatingis an important part

of the leaning process and students are expected to be able to discuss specific course
topics to allow interaction, exchange of opinions, and sharing of knowledge.

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Format of mid-term and final tests: Total: 10 points

Part I: Close questions- questions dealing with terms: 6 questions- 3 points

Part II: Open questions: 3 questions- 3 points

Essay writing: 4 points

Criteria for writing

1.Task response: 1 point

2.Coherence and cohesion: 1 point

3.Lexical resource: 1 point
4.Grammatical range and accuracy: 1 point

Attendance Policy

Students are required to arrive on time and attend all scheduled classes, to
complete all assignments by the due date, and to actively participate in class
discussions. Students are responsible for knowing missed material.

Students who accumulate 6 absences are jeopardizing their good standing and
are in danger of failing.

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 TABLE OF CONTENT

Unit 1: Introduction to Accounting

Unit 2: Making a Career in Accounting (Part 1)
Unit 3: Making a Career in Accounting(Part 2)
Unit 4: Bookkeeping
Unit 5: The Principles and Standards of Accounting
Unit 6: Financial Statements
Unit 7:The Accounting Equation
Unit 8: Depreciation and Amortization
Unit 9: Management Accounting
Unit 10: Cost Accounting
Unit 11: International Accounting
Unit 12: Taxes (Part 1)
Unit 13: Taxes (Part 2)
Unit 14: Auditing
Unit 15: The Future of Accounting

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 UNIT 1: INTRODUCTION TO ACCOUNTING

A. READING
What is accounting? Accounting is the process of identifying, measuring, and
interpreting financial activity. Many people think of accounting as a highly technical
field which can be understood only by professional accountants. Actually, nearly
everyone practices accounting in one form or another on an almost daily basis.
Whether you are preparing a household budget, balancing you cheque book,
preparing you income tax return, or running a company, you are working with
accounting concepts and accounting information.

Accounting has often been called the “language of business”. Since a language is a
means of social communication, it is logical that a language should reflect changes in
our environment, our life-styles, and our technology. Accounting, too, is a means of
social communication in which changes and improvements are continually being
made in order to communicate business information more efficiently.

We live in era of accountability. Although accounting has made its most dramatic
progress in the field of business, the accounting function is vital to every unit in our
society. An individual must account for his or her income, and must file income tax
returns. Often an individual must supply personal accounting information in order to
buy a car or home, to qualify for a college scholarship, to secure a credit card, or to
obtain a bank loan.

Large corporations are accountable to their shareholders, to government agencies,

and to the public. The state and local government, the school districts: all must use
accounting as a basis for controlling their resources and measuring their
accomplishments. Accounting is equally essential to the successful operation of a
business, a university, a social program, or a city.

In every election the voters must make decisions at the ballot box on issues
involving accounting concepts; therefore, some knowledge of accounting is needed
by all citizens if they are to act intelligently in meeting the challenges of our society.

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The Purpose and Nature of Accounting

The underlying purpose of accounting is to provide financial information about an

economic entity. The economic entity which we shall be concentrating upon is a
business enterprise. The financial information provided by an accounting system is
needed by managerial decision makers to help them plan and control the activities of
the economic entity. Financial information is also needed by outsiders – owners,
creditors, potential investors, the government and the public – who have supplied
money to the business or who have some other interest in the business that will be
served by information about its financial position and operating results

A System for Creating Accounting Information

In order to provide useful financial information about a business enterprise, we need

some means of keeping track of the daily business activities and then summarizing
the results in accounting reports. The methods used by a business to keep records of
its financial activities and to summarize these activities in periodic accounting reports
comprise the accounting system.

The first function of an accounting system is to create a systematic record of the

daily business activity, in terms of money. For example goods and services are
purchased and sold, credit is extended to customers, debts are incurred, and cash is
received and paid out. These transactions are typical of business events which can
be expressed in monetary terms, and must be entered in accounting records. The
mere expression of intent to buy goods or services in the future does not represent a
transaction. The term transaction refers to a completed action rather than to an
expected or possible future action.

Of course, not all business events can be measured and described in monetary
terms. Therefore we do not show in the accounting records the appointment of a
new chief executive, the signing of a labour contract or the appearance of a new
competing business on the scene.

In addition to compiling a narrative record of events as they occur, we classify

transactions and events into related groups or categories. Classification enables us to
reduce a mass of detail into compact and usable form. For example, grouping all
transactions in which cash is received or paid out is a logical step in developing
useful information about the cash position of a business enterprise.

To organize the accounting information in a useful form, we summarize the

classified information into accounting reports designed to meet the information
needs of business decision makers.

These three steps we have described – recording, classifying, and summarizing –

are the means of creating accounting information. It is important, however, to
recognize that the accounting process is not limited to the function of creating
information. It also involves communicating this information to interested parties

6
and interpreting accounting information as it relates to specific business decisions.
For example, you may want to compare the financial statements of Company A with
those of Company B to determine which company is the more profitable – which is
financially stronger – and which offers the better chance of future success. You can
benefit personally by making this kind of analysis of a company you are considering
to work for or invest in

Users of Accounting Information

Users of accounting information may be divided into two major categories: external
users and internal users. External users are those groups of individuals who are not
directly concerned with the day- to- day operations of the entity, but who are
indirectly related to it. These users include: owners, lenders, suppliers, potential
investors and creditors, employees, tax authorities etc. Internal users include all
levels of management personnel within an entity who are responsible for the
planning and control of operations.

Several branches of accounting have evolved to meet the needs of these groups.
Two of the most important branches have been identified as financial accounting
and managerial accounting. Financial accounting systems are primarily designed
to provide financial statements to external users for their decision processes,
although internal users also have access to the statements and use them in many of
their decisions. Managerial accounting systems are primarily designed to
supplement the financial accounting information for internal users, thus assisting
them in reaching certain operating decisions. As businesses have become more
complex, the availability of relevant information provided on a timely basis has
become highly important to both classes of users.

The Distinction between Accounting and Bookkeeping

Persons with little knowledge of accounting may also fail to understand the
difference between accounting and bookkeeping. Bookkeeping means the recording
of transactions, the record-making phase of accounting. The recording of transactions
tends to be mechanical and repetitive; it is only a small part of the field of accounting
and probably the simplest part. Accounting includes the design of accounting
systems, preparation of financial statements, audits, cost studies, development of
forecasts, income tax work, computer applications to accounting processes, and the
analysis and interpretation of accounting information as an aid to making business
decisions. A person might become a reasonably proficient bookkeeper in a few
weeks or months, however, to become a professional accountant requires several
years of study and experience

The Accounting Profession and the Work of Accountants

In terms of career opportunities, the field of accounting may be divided into three
broad areas: (1) public accounting, (2) private accounting, and (3) governmental
accounting.

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Public accounting: Public accountants are independent professional persons
comparable to attorneys or physicians, who offer accounting services to clients for a
fee. The specific requirements regarding the right to practice public accounting vary
among different countries. The three primary types of services rendered by public
accountants are: auditing, income tax services, and management advisory services.

Private accounting: In contrast to the accountant in public practice who serves many
clients, an accountant in private industry is employed by a single enterprise. The chief
accounting officer of a medium-sized or large business is usually called the
controller, in recognition of the fact that one of the primary uses of the accounting
data is to aid in controlling business operations. He or she is a part of the top
management team charged with the task of running the business, setting its
objectives, and seeing that these objectives are met.

The accountants in a private business must record transactions and prepare periodic
financial statements from accounting records. Within this area of general accounting,
a number of specialized phases of accounting have developed. Among the more
important of these are: design of accounting systems, cost accounting, financial
forecasting, tax accounting, internal auditing, managerial accounting.

Government accounting: Government officials rely on financial information to help

them direct the affairs of their agencies. Many governmental accounting problems
are similar to those applicable to private industry. In other respects, however,
accounting for governmental affairs requires a somewhat different approach because
the objective of earning a profit is absent from public affairs. Universities, hospitals,
churches, and other non-for-profit institutions also follow a pattern of accounting that
is similar to governmental accounting. Governmental agencies employ accountants
to prepare budgets and to audit the accounting records of various governmental
departments. Every agency of government at every level must have accountants in
order to carry out its responsibilities

B. VOCABULARY
Find the equivalence of the 15 vocabulary terms in Vietnamese

5888Accounting: the process of identifying, measuring, recording,

and communicating economic transactions.

Brat has also worked as an economist in the Army and for the accounting firm
Arthur Andersen.

0 Bookkeeping: the recording of all financial transactions undertaken by an

individual or organization.

Bookkeeping, on a scale requisite for all petty transactions would be an

immensely intricate mechanism.

8
23Accounting system: the system designed to record the accounting transactions
and events of a business and account for them in a way that complies with its policies
and procedures. The basic elements of the accounting system are concerned with the
collecting, recording, evaluating, and reporting transactions and events.

24Accountant: one that keeps, audits, and inspects the financial records of
individuals or business concerns and prepares financial and tax reports.

He took along his brother, Roberto, who was the cartel's accountant.

23 Bookkeeper: a person employed to keep the books of account for a business.

A bookkeeper is responsible for ensuring that all transactions are recorded in the
correct daybook, suppliers ledger, customer ledger and general ledger. The
bookkeeper brings the books to the trial balance stage. An accountant may prepare
the profit and loss statement and balance sheet using the trial balance and ledgers
prepared by the bookkeeper.

I was fielding sales calls, trying to find passwords and other information to help
the bookkeeper, going through mounds of papers.

23 Business entity: the unit for which accounting records are maintained and
for which financial statements are prepared.

24Controller: the top managerial and financial accountant. The controller

supervises the accounting department and assists management in interpreting and
utilizing managerial accounting information.

Anderson- an owner of a mid-sized manufacturing company in Santa Monica has

decided that he needs to hire a corporate controller and is coming up with a job
description.

0 Creditors: those to whom an organization or an individual owes money. The

balance on the creditors’ ledger control account is included in the balance sheet.

Both you and the creditor would have been better off with moderate inflation than
an outright breach.

0 Financial accounting: the branch of accounting concerned with classifying,

measuring, and recording the transactions of a business. Financial accounting is
primarily concerned with providing a true and fair view of the activities of a
business to parties external to it.

1 Managerial accounting: the branch of accounting which is mainly concerned

with providing information helpful to managers running a business.

2 Internal users: the whole staff of the company who is in charge of planning,
maintaining, and supervising its financial activity.

9
0 External users: those groups of individuals who are not directly concerned with
the day to day operations of the entity, but who are indirectly related to it (owners,
lenders, suppliers, potential investors and creditors, employees, taxing authorities
etc.).

1 Governmental accounting: used by government agencies, usually unprofitable

organizations, but which also need to record financial information.

14. Private accountant: an accountant who works in private industry and is

employed by a single enterprise.

0 Public accountant: an independent professional person who offers accounting

services to clients for a fee.

C. DISCUSSION
0 In broad and general terms, what is the purpose of accounting?

1 Why is the knowledge of accounting terms and concepts useful to persons other
than professional accountants?

2 What does the term accounting system mean? What are the main functions of the
accounting system?

3 What are the means of creating accounting information?

4 What does the accounting process involve?

5 What two main groups do users of financial information fall into?

6 What are the main branches of accounting?

7 What are the distinctions between accounting and bookkeeping?

9 What is the principal function of public accountants? What other services are
commonly rendered by public accounting firms?

23 What is the scope of private accounting?

24 What is the purpose of governmental accounting?

D. PRACTICES
I. Fill in the missing words in the sentences below. You will need to use each
word more than once.

10
NOTE. Accountancy (noun) is the theory of keeping financial records.
Accounting (noun+ adjective) refers to the activity of keeping financial records.
Account (noun) is a record of money received and spent. Accountant (noun) is a
person who keeps and works with financial records.

Account; accounts; accountant; accounting; accountancy.

23Can you check that the figures have been entered correctly in the bank account?

24He’s at university studying __________.

25The management of the company have not yet decided on their ___________
policies.

26A bookkeeper writes details of financial transactions in the ________.

27Most people on the profession read __________ magazines and journals in order
to stay informed.

28She’s been working as an ________ with this firm for several years now.

29The directors of the company approve the ___________ at the end of the
__________ year.

30The chief ____________ has completed the draft __________ for this year.

31Each branch maintains its own full __________ system.

32 They have opened an __________ for the consignment to Glasgow.

11.__________ is really not an exact science.

5888A business manager needs some ______________ knowledge in order to

understand what he reads in the company ____________.

II. The word account is now used in everyday English to form phrases with
different meaning. Guess the meaning of the phrases in bold in the sentences
(1-10) below. Choose the correct definition (a-j) on the right.

1. How do you account for the sudden fall in the stock value? a) people say
2. Agents buy and sell goods on their own account. b) report
3. They gave the solicitor a detailed account of the customer’s c) under no
business deals in the last year. circumstances
4. The draft accounts had to be adjusted on account of the d) consider
discovery that a major debtor had gone bankrupt.
5. Raw materials account for30% of the manufacturing cost. e) explain

11
23They are regular customers in this shop and are able to buy
5888 big customers
on account.
24 On no account should these figures be released before
5889 for
the board meeting. themselves
25When making decisions for the future the managers have to
take this year’s poor performance into account. 5890 because of
26 By all accounts, they will benefit greatly if the deal
goes through. 5891 on credit
27 The advertising company has won two new accounts in
South Africa. 5892 represent
III. Match the terms to their definitions.

1. Accountants a) the work or skill of keeping account books or systematic records

of money transactions (distinguished from accounting).
b) the phase of accounting that is concerned with providing
2. Accounting information to managers for use in planning and controlling
operations and in decision making.
23persons who are responsible for collecting, recording, and
5888 Bookkeeping communicating financial information and the
preparation of analyses for decision-making purposes.
5888 the phase of the accounting that is concerned with the
providing
4. Business information to the stockholders and others who are outside of an
entity organization for use in evaluating operations and current financial
condition.
e) the theory and system of setting up, maintaining, auditing the
5. Controller books of the firm; art of analyzing the financial position and
operating results of a business house from a study of its sales,
purchases, overhead, etc.
23Financial 5888 the unit for which accounting records are maintained
accounting and for which financial statements are prepared.
5889 an organization’s chief accounting officer, who is
24Managerial
responsible for establishing and maintaining the organization’s
accounting
accounting system.

IV. Fill in the blanks with the proper words and phrases given below

Non-profit organizations; accounting records; accounting information;

owners; accounting training; making decisions;
business decisions; bankruptcy.

12
 Managers and owners of both large and small profit-making organizations use
______(1) to answer important questions. Are profits sufficient? Should selling
prices be increased or decreased? How many workers should be employed? etc.

Persons responsible for non-profit organizations also need accounting information

as the basis for ______(2).______(3), such as churches, social clubs, and city
governments, must keep spending within money available.

Business managers and ______(4) need good financial information to make good
business decisions. Orderly records of a business' financial activities are called
______(5). Inaccurate accounting records often contribute to business failure and
______ (6). Failure to understand accounting information can result in poor ______
(7) for either profit or non-profit businesses and organizations. ______ (8) helps
managers and owners make better business decisions.

23 Complete the following words

5888 This is name for buildings machinery, money in the bank and money owned by
customers: ………………………………….
5889 The loss of value of the things in number one:
……………………………………..
5890 Money which is borrowed : ………………………………………………
5891 The extra money a company or person pays for borrowing money:
……………………
5892 The total sum of money which is supplied by the owners of a company to set it
up: …………………………………..
5893 Cash or goods which the owner takes from the company for his own private use:
……………………………………….
5894 These are bought by people wishing to invest in the company:
………………………
5895 The extra amount which is paid for a company above the value of its assets:
…………………………………………..
5896 The purchase of another company : ………………………………
5897 An official examination of the accounts: ………………………………..
5898 A financial plan for the future: ……………………………………
5899 A statement of the financial position the company: ……………………………
5900 The official books for keeping accounts: …………………….
5901 A reduction in the price which is offered to customers: ……………….
5902 This company has supplied goods but has not received any money for them yet:
………
5903 Goods which has the company has available to sell: ………………………
5904 Customers who have received goods but not paid for them yet: ……………….
5905 This is the name of the difference between the credit and debit side of a account:
……………………………
5906 Companies make this when they sell their goods for more than it costs:
…………………
5907 Companies make this when they sell their goods for less than it costs:
…………………
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E. TRANSLATION
Translate the following text into Vietnamese

KẾ TOÁN LÀ GÌ? TẤT TẦN TẬT VỀ KẾ TOÁN

1. Nghề kế toán là gì?

“Kế toán là một tiến trình ghi nhận, đo lường, và cung cấp các thông tin kinh tế
nhằm hỗ trợ cho các đánh giá và các quyết định của người sử dụng thông tin”

b. Các thành phần của kế toán:

Kế toán doanh nghiệp được tiến hành tương ứng với luật phát Việt Nam theo tất cả
các thành phần kế toán:

23 Giao dịch tiền gửi và tiền mặt; Tài sản cố định hữu hình và tài sản cố định
vô hình;

24 Kế toán nguyên vật liệu, hàng hóa, sản phẩm;

25 Kế toán chi phí và hạch toán giá thành;

26 Giao dịch ngoại tệ;

27 Hạch toán với đối tác (người mua, người bán);

28 Hạch toán với người nhận tạm ứng;

29 Hạch toán tiền lương với người lao động;

30 Hạch toán với ngân sách.

23Nhiệm vụ của một kế toán là gì?

Với chức năng phản ảnh và kiểm tra, cung cấp thông tin toàn bộ các hoạt động kinh
tế của doanh nghiệp, kế toán có những nhiệm vụcơ bản như sau:

5888Thu thập, xử lý thông tin, số liệu kế toán theo đối tượng và nội dung công việc
kế toán, theo chuẩn mực và chế độ kế toán.

5889Ghi chép, tính toán, phản ánh số hiện có, tình hình luân chuyển và sử dụng tài
sản, vật tư, tiền vốn; quá trình và kết quả hoạt động sản xuất kinh doanh (SXKD) và
tình hình sử dụng kinh phí (nếu có) của đơn vị.

5890Kiểm tra tình hình thực hiện kế hoạch SXKD, kế hoạch thu chi tài chính, kiểm
tra, giám sát các khoản thu, chi phí tài chính, các nghĩa vụ thu, nộp, thanh toán nợ;
kiểm

14
tra việc quản lý, sử dụng tài sản và nguồn hình thành tài sản; phát hiện và ngăn
ngừa các hành vi vi phạm phát luật về tài chính, kế toán.

23 Cung cấp các số liệu, tài liệu cho việc điều hành hoạt động SXKD, kiểm tra
và phân tích hoạt động kinh tế, tài chính, đề xuất các giải pháp phục vụ yêu cầu
quản trị và quyết định kinh tế, tài chính của đơn vị kế toán.

24 Cung cấp thông tin, số liệu kế toán theo quy định của pháp luật.

23Đối tượng của kế toán là gì?

a. Tài sản của đơn vị

23 Điều kiện xác định tài sản:

23 Thuộc quyền sở hữu hoặc quyền kiểm soát lâu dài của đơn vị;

24 Có giá phí xác định;

25 Gắn với lợi ích trong tương lai của đơn vị.

Bạn đang xem: Kế toán là gì? Tất tần tật về kế toán ?

23 Phân loại tài sản theo kết cấu vốn kinh doanh gồm: Tài sản ngắn hạn và tài sản
dài hạn

23 Tài sản ngắn hạn là bộ phận tài sản có thời gian sử dụng, luân chuyển và thu
hồi trong một năm hay một chu kỳ kinh doanh. Tài sản ngắn hạn bao gồm: Vốn
bằng tiền, các khoản đầu tư tài chính ngắn hạn, các khoản phải thu, hàng tồn kho và
các tài khoản ngắn hạn khác.

24 Tài sản dài hạn là bộ phận tài sản có thời gian sử dụng, luân chuyển và thu hồi
trên một năm hay kéo dài qua một chu kỳ kinh doanh. Tài sản dài hạn bao gồm: Tài
sản cố định, bất động sản đầu tư, các khoản đầu tư tài chính dài hạn, tài sản dài hạn
khác.

23 Phân loại tài sản theo nguồn hình thành vốn kinh doanh gồm: Nợ phải trả và
vốn chủ sở hữu.

23 Nợ phải trả là nguồn vốn tài trợ cho tài sản của đơn vị dưới hình thức đơn vị đi
vay, đi chiếm dụng vốn của các đơn vị, tổ chức, cá nhân khác mà đơn vị phải có trách
nhiệm hoàn trả. Xét theo thời hạn cần hoàn trả thì có hai bộ phận: nợ ngắn hạn và nợ
dài hạn.

24 Vốn chủ sở hữu là bộ phận vốn này được hình thành do chính chủ sở hữu của
đơn vị bỏ ra từ kết quả kinh doanh của đơn vị. Tùy theo loại hình doanh nghiệp mà
bộ phận vốn này sẽ được hình thành theo các cách khác nhau.

15
b. Sự vận động của tài sản

23 Sự vận động của tài sản mang tính chất hai mặt bởi sự vận động của tài sản dù
có đa dạng phong phú đến đâu cũng phải nằm ở một tròn hai mặt biến động – biến
động làm tăng và biến động làm giảm.

24 Sự vận động của tài sản thuộc một trong ba quá trình chủ yếu:

23 Quá trình mua hàng là giai đoạn đầu tiên của quá trình sản xuất. Ở giai đoạn
này các yếu tố tài sản như tiền, công nợ với người bán, thuế giá trị gia tăng, nguyên
vật liêu, công cụ dụng cụ,… sẽ bị tác động.

24 Quá trình sản xuất – tại giai đoạn này các yếu tố đầu vào sẽ kết hợp với nhau,
kết quả quá trình là các thành phẩm. Trong giai đoạn này, nguyên vật liệu, hao mòn
tài sản cố định, tiền lương, chi phí sản xuất… bị tác động.

25 Quá trình bán hàng và xác đinh kết quả kinh doanh – đây là giai đoạn thành
phẩm được tiêu thụ trên thị trường và đem lại lợi nhuận cho đơn vị. Các yếu tố sẽ bị
tác động như: thành phẩm, hàng hóa, chi phí bán hàng, doanh thu…

4. Những tố chất cần thiết của một người kế toán

23 Cẩn thận, tỉ mỉ, tư duy logic: là tiêu chí đầu tiên để bạn làm được nghề kế toán
đó là tính cẩn thận đến từng chi tiết, bởi kế toán viên là người gắn liền với những sổ
sách giấy tờ và việc tính toán những con số để làm sao phản ánh chúng một cách
chính xác nhất đối với người sử dụng thông tin.

24 Khả năng phân tích và tổng hợp số liệu và có trí nhớ tốt

25 Yêu thích các con số: kể từ khi bạn quyết định theo nghề kế toán, việc đầu tiên
đó là yêu thích các con số. Điều này, có thể là do sở thích của bạn hoặc được hình
thành khi bạn tiếp xúc với nó trong quá trình học tập hoặc trên giảng đường Đại học
bạn đã bắt gặp bộ môn kế toán mà mình yêu thích. Bạn có mục tiêu rõ ràng và muốn
trưởng thành trong nghề này thì việc làm quen và yêu thích những con số sẽ dần trở
thành niềm vui của mình.

26 Trung thực, kiên nhẫn và nguyên tắc: được xem là yếu tố quan trọng nhất
trong nghề kế toán, vì có liên quan đến sổ sách, tiền bạc của công ty cho nên việc
bạn trung thực sẽ tạo niềm tin đối với nhiều người.

27 Tính chính xác: mỗi nghiệp vụ kế toán sẽ gắn liền với những con số khác nhau,
vì thế công việc này đòi hỏi bạn phải chính xác trong từng ghi chép, trong từng phép
tính.

28 Trách nhiệm kỷ luật cao

16
23 Có kỹ năng sử dụng tốt các chương trình kế toán: với tốc độ phát triển công
nghệ như hiện nay thì các phần mềm kế toán ra đời ngày càng nhiều, với mục đích
giảm bớt áp lực cho nhân viên cũng như tiện ích trong việc quản lý

23Thuận lợi và khó khăn trong nghề

a. Những thuận lợi từ ngành kế toán

23 Kế toán luôn là ngành nghề hot đối với doanh nghiệp. Các bạn phải hiểu rằng,
bất kì doanh nghiệp nào hoạt động cũng cần đến kế toán. Điều này mang đến cho
dân kế toán cơ hội việc làm vô cùng rộng lớn.

24 Đối với kế toán, muốn được thăng tiến là chuyện không quá khó khăn. Có thể
bạn khởi đầu với vị trí thấp như nhân viên kế toán kh0 hay là một thủ quỹ bì thương,
nhưng khi bạn làm việc nghiêm túc, chăm chỉ, nổ lực thì thăng tiến trong công ty là
việc đơn giản. Bạn sẽ dần đi đến vị trí kế toán tổng hợp, kế toán trưởng và thậm chí
có thể đặt chân vào ngôi vị giám đốc tài chính

25 Kế toán sẽ khác với các công việc dịch vụ, marketing. Bạn sẽ làm việc 8 tiếng
mỗi ngày và rồi sau đó vứt lại tất cả ở văn phòng để về nhà thoải mái cũng gia đính.

b. Khó khăn của ngành kế toán

23 Chính vì sợ thông dụng và cần thiết của kế toán đã dẫn đến tỉ lệ chọi khi xin
việc khá cao. Mọi người đều nhìn thấy kế toán khá hot và cần thiết với doanh nghiệp
và đổ xô đi học rất nhiều. Điều này làm cho đầu vào các trường đào tạo chính qui sẽ
rất cao và khi ra trường thì cạnh tranh công việc cũng không hề thấp. Nhưng khi bạn
đã có kinh nghiệm làm việc thì mọi thứ sẽ dần trở nên dễ dàng hơn rất nhiều

24 Mức lương khi mới vào ngành sẽ không cao. Bạn sẽ cảm thấy thất vọng vì điều
này? Không nên bạn nhé, bởi điều này khá dễ hiểu, vì trường học chỉ cho bạn những
lý thuyết xuông không có tính thực tế. Vậy nên hãy kiên trì một thời gian rồi bạn sẽ
đạt được điều mình muốn.

25 Công việc của kế toán phải đối diện với những con số, đòi hỏi sự chính xác
tuyệt đối. Đồng thời khi làm việc, bạn phải suy nghĩ nhiều, các bảng thống kế và
thu chi thì lại rất phức tạp. Nếu bạn yêu thích nghề này thì những khó khăn này
không thể đẩy lùi bạn.

F. WRITING
Write an essay of 300 words explaining the role of accounting in the business
world.

17
 UNIT 2: CAREERS IN THE FIELD OF
ACCOUNTANCY

A. READING
When deciding on a future career a lot of people don't give accountancy a second
thought. Most people don't realize how varied the world of accounting is and in fact
it is often seen as boring. The truth is that accounting is the backbone of any
organization and offers a wide number of attractive careers within it.

Below you will hear about just some of the more common careers in the field of
accountancy, there are of course many more, but we don't have time to talk about all
of them.

When we consider the accounts team within a company, we generally think about
clerks, both sales ledger clerks and purchase ledger clerks recording the financial
information from all transactions the company makes. Other roles include the
payroll clerk responsible for processing staff salaries and the tax which occurs from
them. Higher up the hierarchy we have themanagement accountantwho finalizes
the accounts and prepares the annual financial statements. The people doing these
jobs make sure that the directors or owners of the company always know its true
financial position.

However, accounting is more than just reporting financial data. A good accounts
team actually works to save the company money by minimizing the tax payable and
delaying payments so companies can earn interest from their banks.

These job roles are not so clear in smaller accounting practices, where the accounting
staff often need to perform various tasks from meeting clients to helping with loan
applications. Often the majority of the work in these smaller practices is done by
bookkeepers. Generally, the owner of the practice is the most senior accountant and
is usually a chartered accountant, which means that their signature is accepted on
the financial statements.

18
The job opportunities for accountants don't stop there: auditors are the police of the
accounting world and when they are called into a company it is their job to ensure
that the accounts were done in the correct way and that everything was accounted
for. The most feared of these auditors are the government auditors who are sent to
companies suspected of somehow breaking the rules. Working as an auditor is very
different from other accountancy work as there is no routine; you work in many
locations and have contact with many people. Although, you should be thick-skinned
as often the accounting staff in companies do not like the idea of being audited.

Career progression within accountancy often results from a specialist knowledge in a

particular area, tax advisors are able to help their clients lower their tax bill thanks to
their in-depth knowledge of taxation law and specifically what a client can off-set
against tax.

As you can see the world of accountancy offers various careers, but in all of these
areas there are some qualities that a potential accountant should have. Firstly, as
accounting is the process of collecting and classifying financial data all accountants
need to be perfectionists unwilling to accept anything less than an exact result. Also,
as accountants deal with large volumes of data they need to have a good eye for detail
and a real love of numbers.

A talented accountant will also be able to advise their clients on the best course of
action to take so as to save money and at the same time stay within the local
accounting standards.

Accountants have to follow very strict rules and codes of conduct in order to make
sure that they do everything in a legal way. If an accountant breaks these rules they
could face severe punishment, but some accountants practice creative accounting to
get around rules without breaking them.Confidentialityis obligatory for all people
working with accounts as the financial data could be very sensitive.

Whether working in the public or private sector, accountants can expect to earn very
good salaries and also gain valuable knowledge on topics like income tax, value
added tax(VAT) and pension schemes which can help them in their life outside of
work. What's more, as accounting is such an important part of a company's success
there will always be a demand for good accountants.

After reading this text I hope that you will appreciate the complexity and the variety
of accounting and the value accountants serve in an organization. So the next time
you hear someone say that accounting is dull, please correct them. Accounting is
about truth and money, and there is nothing dull about that!

B. VOCABULARY
Find the equivalence of the 15 vocabulary terms in Vietnamese

19
23Annual financial statements: the set of accounts which are prepared each year
Once a year the shareholders review the annual financial statements to see if the
company made a profit or loss.
23Auditor: a specialist whose job is to carefully check the accounts and accounting
practices of a company
The entire department were scared when the team of auditors arrived and asked to
see all of the previous year's records.
23 Bookkeeper: a person, who may or may not be qualified, that records
the financial transactions of a business
A lot of smaller companies use bookkeepers for their daily accounting needs and
only use an accountant for the yearly financial statements.
23CA (chartered accountant): a fully qualified accountant, holding current
certification
When the bank asked for confirmation that John would be able to repay the loan,
his chartered accountant provided it.
5888Code of conduct: a set of rules (often used within a company) which show
the correct way to behave
All employees must follow the company's code of conduct.
256⸀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀȀĀȀ⸀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ ̀ ĀȀ⸀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀ
ᜀЀĀȀ⸀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ Confidentiality: the state of being secret and/or
kept secret
James was dismissed when he broke confidentiality and told his wife that the
company was having financial problems.
0 Creative accounting: the use of holes in financial law to have an advantage or to
show figures in a deceptive way
Some accountants often use creative accounting to try and cheat the tax authority
out of monies due.
23Income tax: the tax which is due on personal earnings
Most people complain about the rate of income tax, but for those earning over
40,000 a year who have to pay 32% it is an even less comfortable situation.
23Local accounting standards: the set of rules and laws for a country which
govern how accounts should be prepared
Multinational corporations need to be aware of the local accounting standards of
each country they operate in.

20
23 Management accountant: a senior member of the accounting team, who liaises
with company owners / directors and advises on the financial aspects of any planned
action
After the meeting with the management accountant, I realized that launching the
new product line didn't make financial sense.
23 Payroll clerk: the member of the accounting team who deals with employees
The sales-director asked the payroll clerk to issue bonuses to the top five sales
people.
23 Purchase ledger clerk: (U.S. accounts payable) the member of the accounting
team who deals with suppliers, issues payment for goods and services and keeps
track of expenditure
When the supplier contacted the company to ask why the invoice wasn't paid, the
purchase ledger clerk explained that the cheque was in the mail.
23 Sales ledger clerk: (U.S. accounts receivable) the member of the accounting
team who deals with sales, raises invoices and collects payment.
The sales ledger clerk made sure to issue the invoice on the same day as the sale.
23 Tax advisor: a specialist who is able to give advice on matters of taxation
Larger corporations often have a dedicated tax advisor to help them minimize the
amount of tax that they need to pay.
23 VAT (value added tax): the tax which is due on the difference between the
value of a product or service and the cost of its production
The government are talking about increasing the value added tax rate next year,
which means the cost of consumer goods will increase.

C. DISCUSSION
23What is accounting? Why is it necessary for companies and organizations?

24Why do you think accounting is seen as boring?

25 Which of the jobs mentioned would be most interesting for you?
26Why is it so important for accountants to be ethical?

D. PRACTICES
I. Match each definition with the letterof one of the following:

a - balance sheet, b - liquid assets, c - liability, d - net income,

e - property, f - payroll, g - equity,
21
h - journal, i - cash flow, j – expense

23a list of all employees and their wages-->

24an accounting record where all business transactions are initally entered-->
25money that is spent to purchase goods or services provided by someone else -->
26a detailed summary of a person's or a company's financial condition at a specific
point in time, taking into account their assets, liabilities, etc. -->
27something that is legally owned by a person or company -->
28an obligation to settle a debt; money owed to someone -->
29this word has 2 meanings: "stock (shares)" and "net worth" -->
30the balance of cash receipts minus cash payments over a given period of time -->
31cash or something that is easily convertible into cash -->
32 money remaining after all expenses and taxes have been paid

II. Match the word in the box with the definitions below.

Assets; cost accounting; income; tax accounting; financial

accounting; expenditure; liabilities; bookkeeping;
management accounting; auditing

1.____________anything owned by a company –cash, buildings, machines, etc.

2.____________calculating how much tax an individual or a company should pay
or trying reduce this figure.
3.____________checking and evaluating financial records.

4._____________determining the unit cost of a manufactured product, including

indirect costs

5._____________keeping financial records and preparing financial statements.

6._______________ money that a company will have to pay to someone else –
bills, debts, interest, taxes, etc.

7._____________ recording transactions (purchases and sales) in ledgers

8._____________the money that a company receives from supplying goods or

services

9. _____________the money that a company spends.

10. _____________the use of company’s accounting data by its manager for

III. Choose the correct answer

1. A charge for arranging a transaction (e.g. buying or selling securities)
(a) commission (b) fee (c) tax

22
2. A charge for a service performed by a bank
(a) Commission (b) fee (c) tax
3. Payments for an insurance policy
(a) Commissions (b) premiums (c) tariffs
4. A reduction in the value of an asset, charge against profits
(a) Amortization (b) loss (c) waste
5. An adjective meaning after all deductions have been made
(a) Gross (b ) net (c) zero
6. An adjective meaning for a whole group of companies
(a) Consolidated (b) corporate c) mutual
7. An adjective meaning one year or less in financial statements
(a) Annual (b) long-term (c) short-term
8. Part-ownership (less than 50%) of other companies
(a) Conglomeration (b) liabilities (c) minority interests

23Things of value that cannot be physically touched, such as reputation (goodwill),

brand names and trademarks
(a) Intangible assets (b) liabilities (c) tangible assets
10. The net worth of a company – the amount by which an asset exceed liabilities
(a) Dividends (b) profit (c) shareholders’ equity
IV. Complete the sentences below. Use the key words if necessary.

Accounting
……………………….….involves……….………….and summarizing an
organization’s…………………………..…..or business deal, such as purchases and
sales, and reporting them in the form of financial statements. In many countries, the
accounting or…………….profession has professional organizations which operate
their own training and examination systems, and make technical and ethical rules:
these relate to accept ways of doing things.

…………………..……..is the day-to-day recording of transactions.

…………….…….included bookkeeping, and preparing financial statements for

shareholders and creditors — people or organizations who have lent money to a
company.

23
 ………………..……..involves the use of accounting data by managers, for making
plans and decisions.

Auditing
…………………….……means examining a company's systems of control and the
………………………or exactness of its records, looking for errors or possible
fraud: where the company may have deliberately given false information.

An …………..………….is carried out by a company's own accountants or internal

auditors.

An……………..…………is done by independent auditors: auditors who are not

employees of the company.

The external audit examines the truth and fairness of financial statements. It tries to
prevent what is called 'creative accounting', which means recording transactions and
values in a way that produces a false result — usually an artificially high profit.

There is always more than one way of presenting accounts. The accounts of British
companies have to give a………………….………………………..…of their
financial situation. This means that the financial statements must give a correct and
reasonable picture of the company's current condition.

Laws, rules and standards

In most continental European countries, and in Japan, there are …………………….
relating to accounting, established by the government. In the US, companies whose
stocks are traded on public stock exchanges have to …………………….….set by
the Securities and Exchange Commission (SEC), a government agency. In Britain,
the rules, which are called ……………………..……, have been established by
independent organizations such as the Accounting Standards Board (ASB), and by
the accountancy profession itself. Companies are expected to …………..………..or
use these standards in their …………………….………..in order to give a true and
fair view.

Companies in most English-speaking countries are largely funded by shareholders,

both individuals and financial institutions. In these countries, the financial
statements are prepared for shareholders. However, in many continental European
countries businesses are largely funded by banks, so accounting and financial
statements are prepared for creditors and the tax authorities.

V. What type of work does each person do?

1. I record all the purchases and sales made by this department. a. external auditing
2. This month, I’m examining the accounts of a large company. b. management

24
3. I analyze the sales figures from the different departments and accounting
make decisions about our future activities. c. accounting
4. I’m responsible for preparing our annual balance sheet.
d. financial accounting
5. When the accounts are complete, I check them before they
e. bookkeeping
are presented to the external auditors.

VI.Choose the most suitable answer to complete the statement

1. Accounting rules are established by a a. Britain

government agency in . . . .
2. Companies are mainly funded by
shareholders or stockholders in . . . .
3. Accounting rules are set by an
b. most of continental Europe and Japan
c. Britain and the USA
d. much of continental Europe

independent organization in . . . . e. the USA

4. The major source of corporate finance

is banks . . . .
5. Accounting rules are set by the

government . . . .
VII. Choose the correct word to complete the phrase related to accounting

. . . an audit carry out follow apply

. . . an audit do make establish

. . . rules establish use apply
. . . rules summarize follow record
. . . rules make do carry out
. . . rules apply use set
. . . standards do record apply
. . . standards establish set summarize
. . . standards carry out use record
. . . transactions set record establish
. . . transactions apply summarize follow

E. TRANSTATION
Translate the following text into English

25
 MUỐN GIỎI KẾ TOÁN KHÔNG KHÓ

Để trở thành một kế toán giỏi là điều mà rất nhiều bạn chuẩn bị học kế toán, đang
học kế toán và đang làm kế toán đều muốn đạt được nhưng để đạt được trình độ đó
thì có khó không? Câu trả lời là không khó nhưng để giỏi kế toán nó phải có những
yêu cầu nhất định. Những yêu cầu này mình nêu ra dựa vào kinh nghiệm và quan
điểm cá nhân, các bạn có thể tham khảo và góp ý nhé.

1. Kiến thức chuyên môn

Kiến thức chuyên môn về kế toán, tài chính là yếu tố bạn bắt buộc phải có nếu bạn
muốn giỏi kế toán. Nó chính là kết quả của quá trình học tập từ trường lớp và kinh
nghiệm làm việc thực tế của bạn. Qua khoảng thời gian ấy, bạn sẽ bổ sung những
kiến thức cần thiết cho mình và học hỏi nhiều điều từ những người đi trước để làm
vốn kinh nghiệm cho bản thân cũng như trong quá trình làm dịch vụ kế toán. Mặc
dù không có một lịch trình cụ thể cho từng người, nhưng mình muốn gợi ý với bạn
23 lộ trình cơ bản để bản biết mình phải học gì cho từng giai đoạn: 4 năm đầu sau
khi tốt nghiệp bạn phải nắm vững các kiến thức về hạch toán kế toán để 4 năm tiếp
theo bạn có đủ nền tảng để tập trung về phân tích và làm báo cáo chuyên nghiệp, và 4
năm tiếp theo bạn phải có một kiến thức vững chắc về kiểm soát tài chính.

2. Kiến thức về tin học

Làm kế toán, tài chính luôn gắn liền với hàng loạt hệ thống do đó muốn giỏi kế toán,
bạn cũng phải có kiến thức tin học để nắm vững về hệ thống. Những kiến thức cơ
bản về Windows, Excel, Access…là nền tảng cho bạn tiếp cận với các hệ thống cao
hơn khi đi làm như: SAP, Oracle, Navision, Hyperion…Hệ thống thì rất nhiều nhưng
bạn chỉ cần nắm vững 1 vài hệ thống thì khi có cơ hội, bạn cũng sẽ làm tốt với các hệ
thống khác.

23Khả năng ngoại ngữ

Với xu hướng toàn cầu hóa hiện nay, các tập đoàn lớn của nước ngoài đầu tư vào
Việt Nam ngày càng nhiều và các tập đoàn Việt Nam đầu tư ra nước ngoài cũng
không ít. Do đó, một khả năng ngoại ngữ tốt, đặc biệt là tiếng Anh sẽ giúp các bạn
làm tốt công việc hơn nhiều. Với kinh nghiệm gần 15 năm làm trong các tập đoàn
đa quốc gia thì mình thấy ngoại ngữ là một lợi thế rất lớn cho việc phát triển sự
nghiệp của các bạn.

4. Kiến thức về xu hướng kinh doanh

Chắc các bạn sẽ rất ngạc nhiên khi mình nói muốn làm kế toán giỏi thì phải giỏi về
xu hướng kinh doanh. Tuy nhiên, mình xin khẳng định với các bạn, những nhà quản
lý nói chung và quản lý tài chính, kế toán nói riêng thì ngoài việc giỏi chuyên môn
cũng cần có những kiến thức tổng quan về sản xuất, hậu cần, kinh doanh…Trong một
doanh nghiệp thì kế toán bao giờ cũng là khâu cuối cùng của mọi quá trình, nên

26
để làm tốt kế toán, chúng ta phải làm tốt ngay từ lúc xuất phát ở các phòng ban
khác.

5. Cập nhật kiến thức về luật thuế và luật doanh nghiệp

Không kém phần quan trọng đó là phải thường xuyên cập nhật các thông tư nghị
định về thuế và luật doanh nghiệp. Nền kinh tế có nhiều biến động, vì vậy Nhà nước
cũng phải liên tục thay đổi các chính sách để phù hợp với từng thời điểm. Cho nên,
là một kế toán chuyên nghiệp, muốn giỏi bạn phải nắm bắt được những điều này
một cách nhanh chóng và kịp thời để có thể hoàn thành công việc một cách tốt nhất.
Điều chắc chắn là khi bạn nắm vững luật thì các bạn sẽ tối ưu được chi phí thuế một
cách hợp lý và hợp pháp. Và khi cơ quan thuế xuống quyết toán hay thanh tra bạn
cũng sẽ có thể giải trình các yêu cầu của họ.

23Nâng cao tư duy logic.

Tư duy logic không chỉ giúp bạn giải quyết vấn đề, phân tích các số liệu 1 cách chính
xác, hiệu quả mà còn giúp bạn nắm bắt công việc mới nhanh chóng. Cho dù bạn làm
ở vị trí nào thì tư duy logic cũng rất cần thiết, bằng tư duy logic chúng ta có thể nhận
biết được mức độ đúng sai của một báo cáo hay một bảng số liệu. Các bạn có thể xem
thêm bài viết Tư duy logic là nền tảng của mọi thành công

7. Có tính độc lập cao trong công việc, quyết đoán và minh bạch

Một nguyên tắc bất di bất dịch của kế toán viên là phải độc lập và rõ ràng, tất cả
công việc bạn phải thực hiện trên nguyên tắc “chứng từ và hợp lý” chứ không làm
theo bất cứ yêu cầu hay lời nói suông cho dù người đó là ai! Với những ai đã đi làm
rồi thì chắc chắn hiểu nguyên tắc này khi phải giải trình và chịu trách nhiệm trước
cấp trên, với thuế và kiểm toán…

8. Hãy chia sẻ, hỗ trợ và học hỏi

Khi bạn có kiến thức, đừng ngại chia sẻ cho người khác khi họ cần, vì cho dù có giữ
nó cho riêng bạn thì cũng chẳng giúp bạn giỏi thêm tí nào. Và khi hôm nay bạn giúp
một ai đó thì (tin tôi đi!) trong tương lai bạn cũng sẽ nhận được sự giúp đỡ và nhiều
hơn nữa từ chính người đó hoặc một ai khác sẽ giúp bạn hoặc giúp những người thân
của bạn. Thực tế cho thấy, thông qua các trao đổi khi bạn hướng dẫn cho người khác
thì mới giúp bạn hiểu sâu hơn và có thêm kiến thức mới. Còn đi làm thì bạn phải còn
học hỏi, bạn có thể học từ cấp trên của mình, từ đồng nghiệp, từ các công ty khác…
và nguồn quan trọng nhất là Google

9. Mối quan hệ

Tiêu chí này mình đặt cuối cũng nhưng thật ra nó rất quan trọng. Các bạn phải hiểu
chữ “Mối quan hệ” ở đây chỉ mang nghĩ là khi có xung đột với người khác đừng
làm mọi thứ trở nên trầm trọng khi không cần thiết, chứ không mang nghĩa là lấy

27
lòng hay thân thiết với một ai đó.
Trong quan hệ công việc thì dễ của phòng này sẽ là cái khó của phòng khác, dễ của
người này sẽ là khó khăn của người khác…vì vậy hãy cố gắng 1 tỷ lệ win-win.

Các yếu tố trên chỉ mang tính quyết định “kỹ thuật”, ngoài ra nghề nào cũng vậy,
bạn cần phải có sự đam mê, đầu tư và một chút may mắn thì mới có sự thành công.

https://www.dantaichinh.com/muon-gioi-ke-toan-khong-kho/

F. WRITING
Write a composition expressing your own opinion on the topic:Why do people want
to become an accountant? Use the following plan:

Introduction

Paragraph 1: state topic and your opinion clearly

Main body

Paragraph 2: viewpoint 1 and reason

Paragraph 3: viewpoint 2 and reason

Paragraph 4: give the opposing viewpoint and reasons

Conclusion

Final paragraph: restate your opinion, using different words

Useful words and phrases:

To list viewpoints: To begin with, In the first place, Firstly, Secondly, Finally, etc.

To add viewpoints: What is more, In addition, Furthermore, Besides, not only …

but also, etc.

To present the other side of the argument: Some people argue that…, As opposed
to the above ideas, Contrary to what most people believe, etc.

To express opinion: I believe, In my opinion, I think, In my view, I strongly

believe, I feel that, To my mind, It seems to me that, etc.

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 UNIT 3: MAKING A CAREER IN
ACCOUNTING (II)

A. READING
In these uncertain economic times it can be hard to know which career path is right
for you, everywhere you look you can see job cuts and unemployment but the
accounting sector is still performing well.

A recent report on the starting salaries of 2012 university graduates stated that
accounting graduates salaries are still rising with an average salary of $42,500.
When you add that to the fact that in America accounting firms have almost
recovered from the effects of the global crisis, you can see why accountancy is
becoming an attractive prospect.

And that is not all, according to the Bureau of Labour Statistics the prediction is that
in the next 8 years the number of accounting jobs will rise from 1.2 million to 1.4
million in the US.

With such positive reports a lot of young people are looking to become one of the
next generation of accountants. A university education is the most common route into
accounting but it is not the only way, many firms offer apprenticeships where you
learn while you work. This means starting at the bottom so for the first year you are
more likely to be making the tea than preparing the balance sheet, or trial balance.

Those people who have graduated with a degree in accounting can expect to jump
in at the deep end and start dealing with the debits andcreditsthat make up the

29
foundation of accounting. Although, further training will usually be given before
you are expected to work on the more complex accounting issues such as deferral.

Before applying for a job you should consider the area that you would like to work
in. Accounting is not limited to the private sector, with many accounting graduates
being employed by governmental and non-profit organisations.

Public accounting is perhaps the most common choice because they employ the
mostCPAs. Public accounting also offers a wide variety of roles such as: corporate
finance, due diligence, as well as the more traditional accounting and tax advice.
Some public firms also specialise in a particular sector, such as entertainment or
travel, so you can work in an area which interests you. The job of a public
accountant is always changing as new laws are introduced, so you must always be
learning new skills.

Public accounting may not be for everyone, and if you prefer the idea of working for
the government, you would do well to apply to the Internal Revenue Service (IRS).
Working for the national agency often involves analysing a company's financial
statements and attempting to reconcile the tax which has been paid on the reported
earnings. It is a job with a great deal of responsibility and would best suit someone
with a strong knowledge of accounting and tax affairs.

Other government organisations also make use of accounting staff so you could
even end up working for the CIA, but of course you can't talk about it.

To do well in either of these areas you need to remember that whether you are
dealing with a sole-trader, or a limited liability company (LLC), accounting is an
exact science and everyrecordmust be precise. And if you are one of the increasing
number of accountants working for a multi-national corporation, you will need to be
familiar with the often confusing rules on double taxation and be up-to-date on the
exchange rate of the foreign currency you are working with.

There are even more opportunities if you continue your accounting education and
get a PhD in accounting. People, who do this often end up lecturing at Universities
as well as running successful practices or being CFO's of major corporations.

So remember the economy may be in bad shape, but a career in accountancy may just
be the best way to survive the crisis if you can cope with some of the challenges
facing the new generation of accountants.

These challenges include long hours. New graduates, especially, are often expected
to work in excess of 50 hour working weeks with many failing to meet the heavy
workload placed on them. Long hours are not the only challenge of a career in
accounting though. Major accounting firms are constantly raising the employment
requirements with Big4 firms often only hiring MBA graduates.

30
Those who can meet the entry requirements and cope with the long hours, are likely
to find a rewarding career which will allow them to live in a comfortable style and
enjoy the finer things in life.

B. VOCABULARY
Find the equivalence of the 15 vocabulary terms in Vietnamese

23 Balance sheet: a document which summarizes the assets, liabilities and equity
of a business entity at a given time
The analysis of balance sheets for the last three months showed an increase in the
value of the company.
23CPA (certified public accountant): the American and Australian equivalent of a
Chartered accountant
After James passed his exams, he became a certified public accountant.
23CFO (chief financial officer): the most senior financial manager, responsible for
overseeing the financial activities of the entire company
The board of directors were satisfied with the CFO's explanation of the unexpected
loss reported in the accounts.
23Credits: an entry showing the amount of money owed to the company by its
customers
The sales ledger clerk totaled the credits and saw that the company was owed over
$1 million.
23Debit: an entry showing an amount owed (due to be paid by the company),
entered on the left hand side
Before we can pay the invoice, we need to record the invoice as a debit in the
accounting system.
23Deferral: the state for postponing the recognition of an asset or liability until a
future time
As his accountant hadn't finished the tax calculations, he applied for a deferral.
23Double taxation: the state where income tax is paid twice (often to two different
governments) on one income
A lot of countries now have double taxation agreements, so people should only pay
the tax in the country where the money was earned.
8. Due diligence: reasonable actions taken by a person to satisfy a law or regulation

31
The accountant suggested not signing the final contract until all due diligence was
done to check that the company would be profitable.
23Foreign currency: the money used in another country.
Because the company had offices in Spain, Brazil and America, they had to deal
with several foreign currencies including the euro.
5888In excess of: more than, greater than
The most recent set of accounts reported a net profit in excess of $5 million.
0 LLC (limited Liability Company): a business entity where the debts of the
company are separate from the debts of the share-holder
As it was a Limited liability company, the creditors couldn't get at John's private
assets when the company went bankrupt.
23 Reconcile: to ensure that two figures agree with each other
A lot of accounting departments reconcile the bank account to the accounts every
day.
23 Record: a written account of a transaction
The auditors went through every record of sale over the last decade before they
were satisfied.
23 Sole-trader: a business which is owned and run by one person
Sole-traders don’t have to meet such strict accounting requirements as larger
corporations.
23 Trial balance: a statement of all debits and credits in the double-entry account
book, with any discrepancies shown
The company accountant spent two days trying to get the trial balance to agree.

C. DISCUSSION
23Should you need a university education to become an accountant?
24Do companies expect too much from their employees?
25What is your 'accounting' ambition?

D. PRACTICES
I. Here are some jobs and definitions. Fill in the gaps in the definitions with
words from the box below

32
Specializing studying for inspecting its accounts processing the
records

Giving administrative support to inspect its accounts

Trainee accountants

Accountants who are ________for professional examinations.

Bookkeepers

Administrative staff that is responsible for ______of a business's financial activities.

Tax accountant

An accountant who _______ in a company's tax affairs.

Back-office manager

A person in charge of the staff who is responsible for ______to the Finance
department.

Internal auditors

Employees of a company who are responsible _______.

External auditors

People employed by an outside firm of accountants and hired by a

company________.

II. What type of work does each person do and what is the name of each job?

23I record all the purchases and sales made by this department.

24This month, I'm examining the accounts of a large manufacturing company.

25I analyse the sales figures from the different departments and make decisions
about our future activities.

26I am responsible for preparing our annual balance sheet.

27When the accounts are complete, I check them before they are presented to the
external auditors.

33
III. Match the words with the definitions below.
1) accounting a) a precise list or enumeration of
financial transactions
2) audit b) the art of recording, summarizing,
reporting, and analyzing financial
transactions
3) bookkeeping c) the status of a firm's assets, liabilities
and equity positions at a specific point in
time, often described in a financial
statement
4) financial accounting d) the process of measurement, analysis,
preparation and communication of
financial information that is used by
management to plan, evaluate, and control
within an organization
5) an account e) the systematic recording of a company's
financial transactions
6) financial statements f) reporting of the financial position and
performance of a firm through financial
statements issued to external users on a
periodic basis
7) management accounting g) an examination of records or financial
accounts to check their accuracy
8) financial condition h) a written report of the financial
condition of a firm
IV. Choose the best response for each one

23An accountant who reviews the accounting procedures of a company is called

______.
a. an auditor b. an audience c. a lawyer
2. Do you have any experience in using an _________________ costing system?
a. activation-based b. activity-based c. actively-based
23A general _________________ in business says that 20% of the product line
produces 80% of the sales.
a. rule of thumb b. famous rule c. rule of thumbs

4. The term "equity" refers to the owners' _____________________ of the business.

a. partition b. share c. sharing

34
23An expenditure will not necessarily show up on the income
_____________________ at the time the expenditure is made.
a. paper b. check c. statement
6. All expenditures _____________________ ( = in time) show up as expenses.
a. immensely b. eventfully c. eventually
5888Something is an "expense" if it is _____________________ against
revenue during an accounting period.
a. chargeable b. charge c. charging
8. Our company's _____________________ year begins on May 1.
a. frisky b. fiscal c. money-making

0 Thanks to your hard work, we've seen some positive changes in sales
_____________________. ( = we have started selling more)
a. level b. approach c. volume
10. We really need to start keeping our business _________________ organized.
a. transactions b. transitions c. translations

E. TRANSLATION

Translate the following text into English

ĐƯỢC VÀ MẤT KHI THEO NGHỀ KẾ TOÁN

Kế toán với những ưu và nhược điểm đặc trưng cho nghề. Nếu bạn muốn thành
công trong tương lai dựa nhờ ngành này thì không thể bỏ qua những điều mà
Kế Toán Việt Nam đề cập dưới đây.

Cũng như bao ngành nghề khác trong cuộc sống, kế toán cũng có những thế mạnh
và điểm yếu của mình. Xong nếu bạn biết phát triển ưu và giảm lùi nhược thì thành
công sẽ đến với bạn trong nay mai. Bởi kế toán không phải dành cho tất cả mọi
người, vậy nên nếu bạn thực sự có năng lực thì cơ hội phát triển sẽ ngay trong tầm
tay của bạn.

Xét về ưu điểm, nghề kế toán có 6 điều đáng được khen ngợi. Nếu bạn là người
trong nghề thì nên tự hào về chúng.

0 Bạn có thể biết trước tương lập nghiệp của mình

Khác với các ngành nghề khác, kế toán sẽ cho bạn một tương lai rõ dàng và thực tiễn.
Trước khi là 1 nhân viên kế toán cho công ty nào đó thì bạn đã chính là kế toán cho
bản thân mình rồi. Đây là một điều khá đặc biệt và thú vị của nghề cao quý này.

35
Như những chuyên ngành như nguyên cứu thông tin liên lạc, khoa học chính trị,…
bạn rất khó có thể xác định được tương lai và công việc của mình là gì. Thế nhưng
nếu bạn đang là sinh viên theo học kế toán thì chắc chắn đã được đào tạo cụ thể về sự
nghiệp của bản thân. Đây là một trong những ưu điểm tuyệt vời của nghề kế toán.

0Tiềm năng cho sự tăng trưởng

Sau khi tốt nghiệp bạn có thể bắt đầu công việc với các vị trí như là một cộng tác viên
của các công ty. Thế nhưng tiềm năng tăng trưởng có thể được gọi là tuyệt vời. Sau
một vài năm có kinh nghiệm và kĩ năng dày dặn thì bạn có thể bắt đầu di chuyển
“Tiến nhanh về kế toán”.

23Kế toán đang có nhu cầu cao trong xã hội

Hàng năm có thêm bao nhiêu doanh nghiệp thành lập và mở rộng. Vậy thì cũng cần
có nhiều hơn cần ấy người làm nhân viên kế toán. Không những thế, có rất nhiều loại
hình tổ chức khác nhau liên quan đến nghề này. Kế toán đóng một vai trò thiết yếu
trong việc giữ gìn, bảo tồn và phát triển ngân sách của các doanh nghiệp. Mặc dù có
nhiều biến động của nền kinh tế nhưng kế toán vẫn tồn tại ổn định.

23Tiền lương hậu hĩnh

Một trong những ưu điểm của kế toán thường được nhắc đến là nhân công. Không chỉ
làm kế toán có thể kiếm được một mức lương hào phóng mà bạn còn được hưởng
nhiều chính sách ưu đãi như nhận lương hưu, chăm sóc sức khỏe, thời gian nghỉ và
các lợi ích khác.

23Bạn không bị ràng buộc

Trước những mức lương cao ngất ấy thì bạn hoàn toàn không bị bó buộc gì cả. Nếu
bạn đang chuẩn bị cho việc bắt đầu khởi nghiệp tại một thành phố mới thì đừng lo
lắng về công việc hiện tại. Bởi bạn hoàn toàn có thể tìm thấy một công việc khác tại
nơi này. Kế toán sẽ không ràng buộc bạn tại một công ty cụ thể nào đó. Bạn hoàn
toàn có thể di chuyện làm việc trên toàn quốc và quốc tế.

6. Đa lĩnh vực

Kế toán là một nghề đa dạng với nhiều lĩnh vực khác nhau. Từ các lĩnh vực ấy bạn có
thể chia thành nhiều nghề khác nhau. Theo Udemy, có 4 lĩnh vực kế toán: tài chính,
quản lý, kiểm toán và thuế. Bởi sự đa dạng của lĩnh vực này, một kế toán viên sẽ có
nhiều lựa chọn trong sự nghiệp của họ. Họ có thể làm việc cho chính phủ hoặc tại một
tổ chức tư nhân. Họ có thể làm việc tại một công ty lớn hoặc trong công ty nhỏ của
riêng mình. Họ có thể quản lý chi phí của công ty hoặc chỉ làm các loại thuế. Một ưu
điểm khá nổi trội của nghề kế toán khiến nhiều người ưa chuộng.

36
Đi hết những ưu điểm cơ bản nhất của nghề kế toán cũng là lúc chúng ta nên
nhìn nhận lại về những mặt hạn chế nhất định. Liệu bạn sẽ được gì và mất gì khi
theo nghề kế toán?

23Bắt buộc phải có bằng cấp, chứng chỉ

Các con số, kết quả công việc được đánh giá và bảo lãnh bởi các chứng nhận. Khi đi
vào các lĩnh vực chuyên sâu khác nhau thì bạn phải tự trang bị cho mình những giấy
phép ủy quyền, chứng chỉ, bằng cấp liên quan. Vừa phần nào tạo dựng sự tin tưởng,
đảm bảo mà vừa bổ sung kiến thức chuyên ngành cần thiết trong quá trình làm việc.
23mỗi một môi trường làm việc, các quốc gia khác nhau thì sẽ có những yêu cầu
bằng cấp khác nhau. Nhưng thường là những chứng chỉ cao nhất là ít nhất là 1 năm
kinh nghiệm làm việc trong nghề.

23Nghề kế toán sẽ mang đến cảm giác khô khan

Cảm giác ngán ngẩm trong quá trình làm việc là tâm lí chung của nhiều người trong
nghề. Nói cách khác thì nó thật đơn điệu và đẩy lùi cá tính của bạn. Cùng với đó là
bạn hãy chuẩn bị tâm lí cho những quãng thời gian dài ngồi làm việc tại bàn máy tính.

23Dễ bị stress

Kế toán là một nghề được đánh giá là mức độ căng thẳng cao trong thời gian làm
việc. Nhân viên kế toán phải làm việc theo những tiêu chuẩn cho phép và mặc định sẽ
gây cảm giác mệt mỏi, chán nản. Đặc biệt là vào mùa thuế, các nhân viên phải làm
việc căng thẳng. Tuy nhiên, cũng giống như các ngành công nghiệp khác thì kế toán
cũng có mô hình mang tính chu kì.

Kế toán cũng là một lĩnh vực cạnh tranh và có cơ hội phát triển cao trong tương lai.
Khi đọc xong bài viết này, bạn sẽ nắm bắt được hết những ưu-nhược điểm của nghề
kế toán. Nhưng nếu bạn vẫn thấy bản thân có đủ các yếu tố mà nó cần thì hãy theo
đuổi ngành này nhé. Bởi bạn hoàn toàn có đủ năng lực để theo đuổi nghề “khô khan”
này.
Theo kenhthongtintuyensinh

F. WRITING
Write an essay of 300 words on what makes a good accountant.

37
 UNIT 4: BOOKKEEPING

A READING
A lot of people look down on bookkeepers, and the act of bookkeeping is often seen
as one of the less challenging aspects of accountancy. However, without good
bookkeepers, accounts would find that they were faced with a huge amount of extra
work. Bookkeeping is the foundation of accounting and is just as, if not even more
important than some of the more 'glamorous' accounting work.

So why are bookkeepers seen as being less important to the success of an

accounting department than accountants? Well to get the answer to this, it is
important to understand what exactly bookkeeping is.

Bookkeeping within a business is basically the recording of any financial

transactions. These transactions include purchases, sales, receipts and payments- in
fact just about every financial transaction.

A lot of people think that bookkeeping and accounting is the same thing, but this is
wrong. The confusion comes from the fact that bookkeeping is an element of the
accounting process. Accountants create reports from the financial transactions,
which were recorded, and file the appropriate forms with the government. But it is
the bookkeeper who provides the accountant with the source information which
these reports are based on. So without the bookkeeper the accountant would be
forced to spend a great amount of time recording every transaction.

It is also incorrect to think that bookkeeping is easy. Bookkeepers use one of several
methods of recording transactions, thesingle entry bookkeepingsystem and the
double entry bookkeeping system being the most common. Of these methods, it is
universally recognised that double entry bookkeeping is a more effective system for
accounting. By using double entry you can prove the accuracy of the records
toensurethat the two sides agree. This being said double entry bookkeeping is known
for being difficult, with some qualified accountants not completely understanding it.

38
The double entry system works by recording two sides to each income or
expenditure transaction. For example, if you buy a new computer for the office the
two sides would be that: the amount of money in your bank account would decrease
and the value of assets in the office would increase. This follows the accounting
equation that assets - liability = capital.

Traditionally, bookkeepers kept written records in the form of daybooks, sales

ledgers, purchase ledgers and other journals. Recently, computerised accounting
programmes have overtaken these in popularity as they allow bookkeepers to record
transactions faster and at the same time automatically generate reports based on the
figures. In the traditional paper form bookkeeping required an exact knowledge of
which transactions should be posted into which T-accounts, now a bookkeeper can
do the same job by memorising the nominal code attached to an account.

Although automated bookkeeping software has made bookkeeping easier, it is still

an area of great difficulty for anyone without suitable training or experience.
Bookkeeping, as with accounting, requires a thorough understanding of the system
which is being used and the effects of the transactions being posted.

In the single entry system, each transaction is recorded only once. This means that
the record does not accurately show the effect of the transaction and as such is less
effective. Single entry bookkeeping is often used by sole-traders starting out in
business as it requires little expert knowledge. In fact most people who have
balanced their chequebook have used a single entry system.

Bookkeepers bring 'the books' to the trial balance stage at which point the work is
passed to the accountant to prepare the income statement and balance sheet using
the work prepared by the bookkeeper.

Bookkeepers usually also deal with petty cash and authorise its use, VAT returns
and personal tax returns. In fact, just about any 'accounting' function that doesn't
require an official statement from a certified accountant.

In effect anyone working on accounts preparation before this stage can be labelled
as a bookkeeper although most people prefer a more formal title such as accounts
payable. Self-employed bookkeepers face the added difficulty of having to deal
with clients who have either incomplete or disorganised financial records and as a
result have to spend hours wading through boxes of receipts before they can start
recording the financial information contained in these receipts.

Unfortunately a lot of people remain unaware of the complexity of the role of the
bookkeeper, and the term is now more commonly used to show an individual
preparing basic financial records rather than a member of a professional accounting
team.

B. VOCABULARY

39
Find the equivalence of the 14 vocabulary terms in Vietnamese

1.Asset: a resource in the possession of a company which is available for use

The auditors checked the factory to make sure that all the assets listed in the
accounts were there.
23authorize: to give permission to happen
All purchases over five thousand dollars must be authorised by accounts payable.
23daybooks: a journal of financial transactions entered on the day that they
happened
I hate working with daybooks, it is so much easier to use a computerised accounting
system.
23double entry bookkeeping: a system of keeping financial records where each
transaction has a debit and a credit posted
The majority of experienced bookkeepers use double entry bookkeeping as it allows
them to check that both sides agree.
23ensure: to make certain that something happens
All business owners should ensure that their tax returns are received by the Inland
Revenue by 31st April.
23expenditure: all monies spent
The director stopped the lunch programme for employees so he could reduce
expenditure and save money.
23income: all monies received
The company is looking for a way to increase its income, so they are talking about
expanding into a new market.
23incorrect: wrong, false
John wasn't paying attention so the answer he got was incorrect.
23liability: a company's debt or obligation
The company shut down when the accounts showed that the liabilities were larger
than the income and assets.
23 nominal code: a reference number which allows the grouping of financial
transactions
It took me ages to remember all of the nominal codes, but now I do it is much
quicker to enter invoices into the system.

40
23 post: to make an entry in an accounting ledger or software system
When you post a transaction in the system, the programme will automatically post
the second side of it.
23 return: a form which is submitted to a tax authority
When James had finished the clients' tax return he gave it to his supervisor to check
before sending to the Inland Revenue.
23 single entry bookkeeping: a simple system of keeping financial records, where
transactions are entered only once
As Bob wasn't very good at maths he used single entry bookkeeping to keep track of
his daily transactions.
23 T-accounts: an informal word for a set of financial records using double entry
bookkeeping, with debits entered on the left and credits on the right
You should remember that each T-account should balance. If it doesn't, there must
be a mistake somewhere.

C. DISCUSSION
23Have you ever done any bookkeeping?
24Why do you think bookkeepers are not as respected as chartered / certified
accountants?
25Can you think of anything which accountants do, that bookkeepers can't?
26What is the significance of the double entry system for accounting. What other
accounting methods do you know?

D. PRACTICES
I. Read and answer the following questions

The accounting methods

The double entry bookkeeping method is the most widely used bookkeeping
method. It is a standard accounting method that involves each transaction being
recorded in at least two accounts, resulting in a debit to one or more accounts and a
credit to one or more accounts. Double entry accounting provides a method for
quickly checking accuracy because the sum of all accounts with debit balances
should equal the sum of all credit balance accounts.

The best accounting software for business uses double entry accounting; without
that feature an accountant will have difficulty preparing year end and tax records.

41
In the double-entry accounting method every journal entry transaction is recorded in
the journal once, but affects two different accounts (using a Chart of Accounts):

23 The first entry shows a change on the assets side - the debit entry.

24 The second entry shows a change on the equities side - the credit entry.

The double-entry method can be very confusing at first but when entries are
properly recorded the account books will balance because the total of all credit
entries will be equal to the total of debit entries.

The double-entry accounting method is used by most businesses throughout the

world. However, some businesses that have strictly cash transactions may use the
single entry bookkeeping method instead.

Accounting methods refer to the basic rules and guidelines under which businesses
keep their financial records and prepare their financial reports. There are two main
accounting methods used for record-keeping: the cash basis and the accrual basis.

Accounting records prepared using the cash basis recognize income and expenses
according to real-time cash flow. Income is recorded upon receipt of funds, rather
than based upon when it is actually earned, and expenses are recorded as they are
paid, rather than as they are actually incurred.

In contrast, the accrual basis makes a greater effort to recognize income and
expenses in the period to which they apply, regardless of whether or not money has
changed hands. Under this system, revenue is recorded when it is earned, rather than
when payment is received, and expenses recorded when they are incurred, rather than
when payment is made.So it is an accounting method that measures the performance
and position of a company by recognizing economic events regardless of when cash
transactions occur.This method allows the current cash inflows/outflows to be
combined with future expected cash inflows/outflows to give a more accurate picture
of a company's current financial condition.

Answer the following questions.

23What accounting methods do you know?

24What is the most widely used bookkeeping method?

25How do you understand the double entry method?

26What is the purpose of this method?

27Can you explain what the cash basis method is?

28What is the difference between the cash basis and the actual basis methods?

42
II. Fill in the correct word from the list below

Debit, accrual, cash, financial, accurate, chart, to earn, double entry

1. …………………… basis

2. …………………… picture

3. …………………… flow

4. …………………… method

5. …………………… condition

6. …………………… entry

7. …………………… of accounts

8. …………………… revenue

III. Complete the sentences with the missing parts

expenses matches the revenues or used up; upon receipt of funds;

the balance sheet; two; two different accounts; services or goods have been
delivered

23The financial statement that reports assets, liabilities, stockholders’(owners’)

equity at a specific date is _____________________________.

24Under the accrual basis of accounting revenues are reported in the accounting
period when __________.

25Accounting entries involve minimum of _______ accounts.

26Under the accrual basis of accounting expenses are reported in the accounting
period when ________.

27Under the cash flow basis income is recorded _______.

28In the double-entry accounting method every journal entry transaction is recorded
in the journal once, but affects ________.

IV. Choose the correct answer to fill in the gap

1. I ________ our profits for the previous accounting period.

a) called b) gathered c) calculated

43
 2. Your job will be to _________ and maintain financial records.

a) promise b) prepare c) make

3. An accounting period is a period of time over which _________ are calculated.

a) prophets b) profits c) profiteering

6144⸀ĀᜀĀ ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀȀ⸀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀࠀ尀攀渀搀愀猀栀 
ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀ⬀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ Accounts
__________refers to the money that is owed to the company by its
clients/customers.

a) receivable b) receptive c) respected

5. To accrue means to accumulate or __________.

a) decrease b) regret c) increase

6. I indicated all the accrued expenses on your balance __________.

a) sheet b) paper c) note

7. Another word for accounting is __________.

a) finance b) bookkeeping c) money counting

0 Things of value owned by a business are known as its __________.

a) assertions b) assessmentc) assets

1 What's the opposite of an asset?

a) cash b) liability c) liaison

10. Every company should have a clear record of their ___________ assets.

a) fixed b) fix c) fixture

V. Study the comparison chart and answer the following questions:

BASIS FOR
BOOKKEEPING ACCOUNTING
COMPARISON

Meaning Bookkeeping is an activity of Accounting is an orderly recording

recording the financial and reporting of the financial
transactions of the company affairs of an organization for a
in a systematic manner. particular period.
44
 BASIS FOR
BOOKKEEPING ACCOUNTING
COMPARISON

it? It is the subset of accounting. It is regarded as the language of

business.

Decision On the basis of bookkeeping Decisions can be taken on the

Making records, decisions cannot be basis of accounting records.
taken.

Preparation Not done in the bookkeeping Part of Accounting Process

of Financial process
Statements

Tools Journal and Ledgers Balance Sheet, Profit & Loss

Account and Cash Flow Statement

Methods / Sub- Single Entry System of Financial Accounting, Cost

fields Bookkeeping and Double Accounting, Management
Entry System of Accounting, Human Resource
Bookkeeping Accounting, Social Responsibility
Accounting.

Determination Bookkeeping does not reflect Accounting clearly shows the

of Financial the financial position of an financial position of the entity.
Position organization.

0 What is the subject of accounting?

1 Where the accounting decisions can be taken?
2 What are the main tools of bookkeeping?
3 What are the main tools of accounting?
4 Does the bookkeeping reflect the financial position of an organization?
5 What are the main methods of bookkeeping?
6 What are the main methods and subfields of accounting?
7 Give the definition of bookkeeping.

VI. Complete the sentences below. Use the key words if necessary.

Double-entry bookkeeping

45
A.J. works in the accounting department of a trading company:

‘I began my career as a bookkeeper………………………….…record the

company's daily……………………………...: sales, purchases, debts, expenses,
and so on. Each type of transaction is recorded in a separate ……………………..—
the cash account, the liabilities account and so on………………………………....is
a system that records two aspects of every transaction. Every transaction is both a
………………….……— a deduction — in one account and a corresponding
………— an addition — in another. For example, if a company buys some
………………………………— the substances and components used to make
products — that it will pay for a month later, it debits its purchases account and
credits the supplier's account. If the company sells an item on credit, it credits the
sales account, and debits the customer's account. As this means the level of the
company's…………………..………— goods ready for sale — is reduced, it debits
the stock account. There is a corresponding increase in its……………………—
customers who owe money for goods or services purchased — and the debtors or
accounts payable account is credited. Each account records debits on the left and
credits on the right. If the bookkeepers do their work correctly, the total debits
always equal the total credits.’

Day books and ledgers

'For accounts with a large number of transactions, like purchases and sales,
companies often record the transactions in …………………………..….or
……………………., and then put a daily or weekly summary in the main double-
entry records.
In Britain, they call the main books of account …………………..
…………….………..— suppliers to whom the company owes money for purchases
made on credit - are recorded in a ………………………………….…... They still
use these names, even though these days all the information is on a computer.'

Balancing the books

'At the end of an ………………………….., for example a year, bookkeepers

prepare a ………………………………which transfers the debit and credit balances
of different account onto one page. As always, the total debits should equal the total
credits. The accountants can then use these balances to prepare the organization's
financial statements.'

VII. British English or American English?

debtors
accounts receivable
creditors
accounts payable
stock
46
 inventory

VIII. Match the definitions with the words below

1. an amount entered on the left-hand side of an account, a. stock
recording money paid out — b. creditors
2. a book of accounts — . . .
c. credit
3. customers who owe money for goods or services not yet paid
d. ledger
for — . . .
4. an amount entered on the right-hand side of an account, e. debtors

recording a payment received — f. debit

5. goods stored ready for sale

6. .suppliers who are owed money for purchases not yet paid for

— ...

IX. Complete the sentences. Use the words from the box if necessary.

…………………..……shows where money comes from and where it goes: it is

always transferred from one ………………………….…….to another one. Every
event in entered twice - once as a credit and once as a …………………..

Most businesses record very frequent or numerous transactions

in………………………………..or………………..

The main account books are called…………….………, and the book relating to
creditors is called the……………….

In order to prepare financial statements, companies do

a…………….…………..which copies all the debit and credit balances of different
accounts onto a single page.

X. Complete the sentences using 'debit' or 'credit'

If you buy new assets, you . ………………... . the cash or capital account. If
you pay some bills, you ………………….. . . the liabilities account.
If you buy materials from a supplier on 60 days' credit, you ……………. . .
the purchases account and . ………………………... . the supplier's account.

If you sell something to a customer who will pay 30 days later, you . .
…………………. the sales account and . . …………….. the customer's
account.

47
E. TRANSLATION
Translate the following text into English

TÌM HIỂU SỰ KHÁC BIỆT GIỮA ‘ACCOUNTING’ VÀ ‘BOOKKEEPING’

Hầu hết các doanh nghiệp nhỏ cho rằng ‘bookkeeping’ (ghi sổ) và ‘accounting’ (kế
toán) là một. Mặc dù ‘bookkeeping’ và ‘accounting’ liên kết chặt chẽ với nhau và
đều liên quan đến vấn đề tài chính của doanh nghiệp, nhưng chúng là hai khái niệm
hoàn toàn khác nhau. Giống như bán hàng và tiếp thị, bạn cần phải lưu ý khi làm
việc với hai khái niệm này để đảm bảo sổ sách kế toán của doanh nghiệp được ghi
chép và báo cáo một cách chính xác. Bài viết này sẽ chỉ cho các bạn về những điều
cơ bản của ‘bookeeping’ và ‘accounting’, nhờ vào đó bạn sẽ hiểu được hai khái
niệm này khác nhau ra sao và phải làm việc như thế nào với chúng.

‘Accounting’ là gì?

Chúng ta sẽ bắt đầu với khái niệm và mục đích của ‘accounting’ – kế toán. Kế toán
thường được hiểu là một phòng ban trong doanh nghiệp bao gồm các nhân viên kế
toán. Họ có nhiệm vụ quản lý sổ sách kế toán để đảm bảo rằng các giao dịch tài
chính được ghi chép một cách đúng đắn và hợp lệ. Bộ phận kế toán sẽ theo dõi
doanh thu và chi phí phát sinh trong kỳ để đảm bảo rằng doanh nghiệp không gặp
vấn đề về tiền mặt. Trong doanh nghiệp cỡ nhỏ, bộ phận kế toán thường kiêm luôn
cả việc quản lý các phương thức ghi chép sổ sách.

Hầu hết các doanh nghiệp ít nhất phải có một kế toán, cho dù họ thuê nhân viên này
chỉ để làm kiểm toán và giải quyết các vấn đề liên quan đến thuế. Kế toán quản lý
nguồn tiền của doanh nghiệp và giám sát để đảm bảo rằng mọi giao dịch đều được
ghi nhận.

Bộ phận kế toán sẽ chịu trách nhiệm về thanh toán lương cho nhân viên, chi trả các
phúc lợi xã hội cho nhân viên và các khoản chi phí khác của doanh nghiệp. Bộ phận
kế toán sẽ chịu trách nhiệm làm việc với kiểm toán nội bộ và bên ngoài.

Bộ phận kế toán trong công ty bạn còn có trách nhiệm theo dõi tài sản của doanh
nghiệp và quản lý quá trình khấu hao của các loại tài sản này.

‘Bookkeeping’ là gì?

‘Bookkeeping’ khác ‘Accounting’ như thế nào? Như bạn thấy, ‘accounting’ là một
bộ phận chịu trách nhiệm tất cả các vấn đề liên quan đến tình hình tài chính của
doanh nghiệp. Khái niệm ‘bookkeeping’ có hơi khác một chút so với ‘accounting’
bởi nó chỉ chịu trách nhiệm về các giao dịch tài chính diễn ra hằng ngày.
‘Bookkeeping’ đơn thuần là một phương pháp để ghi chép lại tất cả các giao dịch tài
chính lên sổ sách để thông tin về các giao dịch thường ngày được chuyển đến cho bộ
phận kế toán. ‘Bookkeeping’ không chịu trách nhiệm về vấn đề phân tích sổ sách kế
toán hay hiểu về thuế hoặc những vấn đề tài chính quan trọng khác.
48
Hãy nghĩ ‘bookkeeping’ chính là ghi chép sổ sách. Khi một người đến cửa hàng của
bạn mua hàng, bạn sẽ ghi lại giao dịch này trên sổ, như thế gọi là ‘bookkeeping.’ Tất
cả những giao dịch nhỏ nhất cũng phải được ghi chép để cho bộ phận kế toán làm
việc hiệu quả. ‘Bookkeeping’ thường liên quan đến phần mềm kế toán bao gồm các
loại sổ cái. Hệ thống sổ cái này có chức năng giúp bạn theo dõi luồng tiền đến và đi
của doanh nghiệp.

‘Bookkeeping’ có thể được ghi chép trên giấy, nhưng nó sẽ khó khăn hơn trong việc
theo dõi. Phần mềm kế toán là lựa chọn tốt nhất bởi nó dễ sử dụng và bao gồm nhiều
thông tin hơn. Những thông tin này đôi khi cần thiết cho bộ phận kế toán trong
trường hợp có vấn đề phát sinh hoặc sẽ cần phải liên lạc với khách hàng cũng như
nhà cung cấp.

Có 2 cách thức để làm ‘bookkeeping’, Kế toán đơn (single entry) và Kế toán kép
(double entry). Kế toán đơn rất thông dụng trong quá khứ và nó chỉ bao gồm một
bút toán duy nhất là “Có” hoặc “Nợ.” Kế toán kép cho phép bạn ghi bút toán vào 2
sổ cùng một lúc. Kế toán kép giúp cho sổ sách kế toán của bạn luôn cân.

Mỗi doanh nghiệp quản lý ‘bookkeeping’ và ‘accounting’ theo phương pháp riêng
của họ. Hãy quyết định xem đâu là lựa chọn tốt nhất để quản lý hiệu quả tình hình
tài chính của doanh nghiệp mình.

https://www.ftmsglobal.edu.vn/tim-hieu-su-khac-biet-giua-accounting-va-bookkeeping/

(Theo Business Knowledge Resource)

F. WRITING
For accountants, effective writing skills can be as important as the ability to crunch
the numbers. Your professional development and competitive edge depend as much
on your ability to communicate what you’ve found as the findings and
recommendations themselves.

So what are some of the key writing challenges accountants face when trying to do
this?

49
 UNIT 5: THE PRINCIPLES AND
STANDARDS OF ACCOUNTING

A. READING
In the 21st century many laws and regulations have been standardized but there are
still some standards which are specific to each country.

If you work in accounting in the US you will have heard of and understandtax
accounting, but your European counterpart will have no idea what it is. Unlike a lot
of countries where the generally accepted accounting principles (GAAP) is the
only method for calculating tax, accountants in America have two options; tax
accounting and GAAP.

So to clear up the question: ‘What is the difference between GAAP and tax
accounting?’

The primary difference between the methods is that under GAAP, all financial
transactions must be recorded and accounted for whereas tax accounting focuses on
the transactions which have an impact on the tax situation of the company, with
other transactions beingomitted.

The Generally Accepted Accounting Principles is the compulsory method of

accounting for a public company. Tax accounting can be similar, but with far more
options available.

Knowing the differences between these two methods of accounting will help you
determine the best method to use for your clients and your business.

GAAP exists to provide accounting principles, standards and practices, which as a

result of being standardised provides financial statements capable of being compared
amongst each other. The Internal Revenue Service (IRS) developed a tax accounting
system to levy taxes against net earnings or taxable income. Taxable income
differs from revenue as defined by GAAP.

50
Depreciation, the allocation of cost over the estimated useful life of an asset, also
varies between the two methods. Common depreciation methods under U.S. GAAP
include straight line and reducing balance depreciation. Tax accounting commonly
uses the Modified Accelerated Cost Recovery System, or MACRS, which uses
declining percentages defined by the IRS. In addition, the IRS allows taxpayers to
expensea fixed asset in the year of the purchase.

The accounting basis used in the production of financial statements determines how
to report transactions and what information appears on the finished financial
statements. Under GAAP the only option is accrual basis accounting. But the tax
accounting system allows for the use of cash, accrual or modified basis accounting.
Developing and using the GAAP accounting system can be too expensive for small
business, so the IRS lets smaller companies account for their business transactions
using alternative methods.

Using GAAP, unpaid due expenses accrue on the balance sheet. This results in an
expense accrual, which is a liability to be paid at a later date. Tax accounting does
not need an accrual basis unless you report your company tax return as an accrual
basis taxpayer.

The IRS imposes limits for both cash and modified basis accounting, which
includes income and expense reporting limits as well as revenuelimits.

Having highlighted the differences between the two systems, it is clear that the two
are not equal and depending on your business one may be better suited for your
needs.

There are several reasons why so many small and medium sized enterprises (SME)
use the tax accounting system over GAAP.

Tax accounting issignificantly simpler than GAAP, as instead of having to record

every single transaction, only those which impact on the tax situation are taken into
consideration. This makes tax accounting the preferred method for the majority of
CPA’s and SME’s.

Many firms use professional accountants to prepare the tax returns and financial
statements. When the basis of the taxes differs from the financial statements, more
time is spent on the process, resulting in higher fees. Businesses often change to tax
accounting basis when changes required by GAAP are too expensive.

Most business owners have a degree of knowledge on income taxes because they
usually check their returns and sign them. This knowledge should be consistent with
tax accounting principles. Tax regulations use everyday language and easily
understandable examples as they are not just meant for experienced accountants but
also business owners. GAAP rules are more technical and are designed for
professionals with wide financial knowledge who can fully understand and apply
them.

51
B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

0 accrual basis accounting: the method of accounting in which income and

expenditure are recorded at the date they are earned / incurred
From the accounting point of view, it doesn't matter when you actually receive the
payment as I am using accrual basis accounting so I have already accounted for the
invoice.
0 be consistent with: in agreement with, In accordance with
Whichever method you use when accounting for tax, it is important to be consistent
with the regulations in that method.
23depreciation: the method of allocating the cost of an asset over its useful life
The depreciation of the new machine will happen over 12 years.
23expense: show the full cost of something in the company
I don't expect that the new van will be worth anything after 12 months, so I decided
to expense it in the accounts this year.
23fixed asset: an asset which is not consumed or sold during the normal course of
business activities
The auditors checked through the list of fixed assets and made sure that all the
machinery, vehicles and property listed really existed.
23GAAP (generally accepted accounting principles): the common set of
standards and procedures used by companies when preparing financial statements
All accountants should have a firm understanding of GAAP, and follow the
principles closely.
23levy: impose or collect
The government levies a higher tax on luxury goods, than on basic products.
5888net earnings: a company's total revenue minus the operating
expenses, depreciation, and interest paid and taxes
When the board reviewed the previous year's accounts they were pleased to see that
the net earnings had increased.
23omit: exclude, leave out
When the company was audited, it was noticed that $12,000 of income had been
omitted from the tax return.

52
23 public company: a firm which is permitted to sell shares in the firm to the
general public
After the merger Questcore became a public company and the value of their shares
has increased by over 30%.
5888reducing balance depreciation: a method of deprecation which imposes a set
rate of depreciation on the remaining balance of the asset
The new premises cost $100,000 but as we will be using reducing balance
depreciation over 5 year - the first year will cost us the most.
0 revenue: the amount of money a company receives over a given time frame
Due to the Christmas season, revenues in shops are usually higher in the last
quarter of the year than the first.
0 significant: having or expressing meaning, important
As a potential investor the most significant figures for me are the total profit and
the liabilities.
0 tax accounting: methods of accounting which focus on tax instead of the
appearance of public financial statements
Tax accounting provides a simpler method of calculating your tax liability.
ᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀЀĀȀ⸀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ0 taxable income: the amount
of money on which tax is paid
Tax revenues fall when workers lose their jobs, and the taxable income that goes
with them.

C. DISCUSSION
23What is the importance of applying accounting principles and standards in
preparing reports?

24 Should accounting principles be standardized across the world?

25How could GAAP be made simpler?

26Is it necessary to have two systems for accounting for tax? Why / why not?

D. PRACTICES
I. Match the principles with their explanations.
1. Economic entity assumption a) This accounting principle assumes that
a company will continue to exist long
enough to carry out its objectives and
commitments and will not liquidate in the

53
 foreseeable future

2. Monetary unit assumption b) This accounting principle assumes that

3. Going concern principle
4. Time period assumption
5. Matching principle
6. Revenue recognition principle
it is possible to report the complex and
ongoing activities of a business in
relatively short, distinct time intervals
c) Under the accrual basis of accounting
(as opposed to the cash basis of
accounting), revenues are recognized as
soon as a product has been sold or a
service has been performed, regardless of
when the money is actually received
d) Economic activity is measured in U.S.
dollars, and only transactions that can be
expressed in U.S. dollars are recorded
e) The accountant keeps all of the
business transactions of a sole
proprietorship separate from the business
owner's personal transactions. For legal
purposes, a sole proprietorship and its
owner are considered to be one entity, but
for accounting purposes they are
considered to be two separate entities
f) This accounting principle requires
companies to use the accrual basis of
accounting. The matching principle
requires that expenses be matched with
revenues

II. Fill in the prepositions.

23The objectivity principle says that accounts should be based … facts and not on
personal opinions or feelings.

24Companies with subsidiaries … different countries have to convert their results

into one currency in consolidated financial statements for the whole group …
companies.

25The principle … materiality says that very small and unimportant amounts do not
need to be shown.

26Companies have to disclose all relevant financial information … their annual

reports.

54
23The matching principle requires that expenses be matched … revenues.

24It is necessary to pass exams … Accounting.

25The applicant must study accountancy … a college or university.

26To become a Chartered Accountant, the applicant must apply … a training

contract with a recognized company.

III. Match the two parts of the sentences.

1. In Britain a) accounting rules are established by a
government agency
2. In most of continental Europe and b) companies are mainly funded by
Japan shareholders
3. In the USA c) accounting rules are set by an
independent organization
4. In Britain and the USA d) the major source of corporate finance is
banks
5. In much continental Europe e) accounting rules are set by the
government
IV. Match the English words on the right with their definitions on the left

1. Audit a) a fundamental or general truth, law or standard

2. Message b) a comparison made to show a similarity

3. Extent c) data on which to base proof or to establish truth or falsehood
an inspection, correction and verification of business accounts
d)
4. Principle conducted by an independent qualified accountant
5. Ingredient e) a component of a mixture
6. Conformity
f) agreement or similarity, especially in a certain limited number
of features or details
7. Evidence g) a person qualified to audit accounts
a communication, usually brief, from one person or group to
8. Comparability h) another
9. Analogy i) compliance in actions, behaviour, etc., with certain accepted
standards or norms
10. Auditor j) the range over which something extends; scope

V. Read the text again and put the jumbled words into a correct order:

1. the rules, financial, statements, Accounting, are, for preparing, standards.

55
0 standards, the rules, how, governing, is, an audit, performed, Auditing, are.

1 standards, and, are, Accounting, interrelated, standards, auditing.

2 has, been, the language, Accounting, of, business, called.

3 statements, GAAP, Financial, to, conforming, are, to be, said, reliable.

VI. Read the text once again and rearrange the sentences into a chronological
order:

0 It should be remembered that accounting reflects the environment in which it

operates.

1 An audit of financial statements is the technical process by an independent

person (the auditor) gathers evidence to form an opinion about the conformity of
financial statements to GAAP.

2 Accounting standards presumably define what useful financial information is.

3 Accounting standards define what acceptable and unacceptable financial

accounting practices are.

4 The existence of different accounting and auditing standards affects the decisions
of resource providers to the extent that they fail to understand or trust the messages
communicated by financial statements.

VII. Choose phrases to describe what each speaker is talking about.

23I always study the ___ of a company before I invest, so I can get a clear picture of
all the key figures.
А investment ratios B return on assets
C interest cover D income leverage
5888The interest payments for the period are £30,000 and the operating profit
is £120,000, so ___ is 25 per cent.
А investment ratios B interest cover
C income leverage D return on assets
256 Look at the level of borrowing in relation to share capital -1 am not sure I want
to invest in a company that is so ___.
А income leverage B investment ratios
C interest cover D highly geared

56
0 The company's operating profit for the period is £100,000 and the interest
payments for the period are £20,000, so they have ___ of 5
. А investment ratios B interest cover
C return on assets D income leverage
5. A company's profits in relation to its resources is described as its ___
А interest cover B income leverage
C return on assets D investment ratios
VIII. Decide which of the alternatives each speaker is talking about.
0 We're very happy with their auditing work, but we're not allowed to use them for
management consultancy services: we'll need to appoint another organization for
that.
А expectation gap B conflict of interests
C corporate collapses D accounting irregularities
0 It's the job of the management to detect fraud and prevent error; however, many
managers believe this is the auditors' job.
0 corporate collapsesB accounting irregularities
C expectation gap D auditor rotation
23We have used Ames and Company for two years now; it's time we started
looking for a replacement.
А auditor rotation B accounting irregularities
C corporate collapses D expectation gap
23The company admitted that the announcement of results would be delayed
following the discovery of discrepancies in its previous year's accounts.
А auditor rotation B corporate collapses
C expectation gap D accounting irregularities

IX. Complete the sentences below. Use the key words if necessary.

Valuation and measurement

Investors in companies want to know how much the companies are worth, so
companies regularly have to publish the …………………..………of their assets
and liabilities. Companies also have to ……………..………………calculate their
profits or losses: their managers need this information, and so do shareholders, and

57
the tax authorities.

Companies can choose their………………………….— their way of doing their

accounts. There are a range of methods of……………..……..— deciding how
much something is worth — and………………..……..— determining how big
something is — that are accepted by law or by official accounting standards. In the
USA, there are Generally Accepted Accounting Principles (GAAP). In most of the
rest of the world there are International Financial Reporting Standards (IFRS), set
by the International Accounting Standards Board. These are technical rules or
……………..……. accepted ways of doing things that are not written down in a
law.

Although businesses can choose among different accounting policies, they have to
be……………………………., which means using the same methods every year,
unless there is a good reason to change a policy: this is known as the
……………………….. The policies also have to be ………………………or
revealed to the shareholders: the Annual Report will contain a 'Statement of
Accounting Policies' that mentions any changes that have been made. This enables
shareholders to compare profits and values with those of previous years.

Areas in which the choice of policies can make a big difference to the final profit
figure include …………………….….— reducing the value of assets in the
company's accounts, the valuation of stock or inventory, and the making of
………..………………— amounts of money deducted from profits — for future
pension payments.

As there is always more than one way of presenting accounts, the accounts of
British companies have to give ……………….of their financial situation —
meaning there are various possibilities — rather than the true and fair view —
meaning only one is possible.

Historical cost and inflation accounting

The aim of accounting standards is to provide shareholders with the information

that will allow them to make financial decisions. This is one reason why in many
countries accounting follows the …………………….: companies record the
original purchase price of assets, and not their (estimated) current selling price or
replacement cost. This is more objective, and the current value is not important if
the business is ……………….— a successful company that will continue to do
business — as its assets are not going to be sold, or do not currently need to be
replaced.

However, some countries with regular high inflation (e.g. in South America) use
………………..….that take account of changing prices. One system used is
…………….…….., which values all assets at their ……………………..— the
amount that would have to be paid to replace them now

58
23 British English or American English?

depreciation
amortization
a true and fair view
a fair presentation

XI. Match the two parts of the sentences.

1. Companies’ managers, investors,
creditors and the tax authorities all
2. There are different ways of doing
accounting but companies have to be
consistent,
3. Companies gave to disclose or make
known . . .
4. The historical cost principle is that the or losses.
price paid to buy assets, . . .
5. A going concern usually doesn't . . .
a. need to know the current market value
of its assets.
b. and not their current value, is
recorded in accounts.
c. need to know about the size of profits
d. which means regularly using the same
methods.
e. which accounting methods they are

using.

XII. Are the following statements true or false?

23Companies are told which accounting policies to use.

24Companies can change their accounting policies whenever they like, as long as
they disclose this in their Annual Report.

25Companies could produce several profit figures, depending on how they

depreciated their assets, valued their inventory, etc.

26There is only one correct interpretation of a company's financial position, and

company accounts must show this.

27In a lot of countries, companies do not record the current value of their assets.

28In countries with high inflation, companies value their assets at their current
replacement cost.

E. TRANSLATION

Translate the following text into English

12 NGUYÊN TẮT KẾ TOÁN CƠ BẢN VÀ QUAN TRỌNG NHẤT

59
Nguyên tắc kế toán là những chuẩn mực, quy ước, chỉ dẫn, hướng dẫn cơ bản nhất
mà tất cả các tổ chức, doanh nghiệp phải thực xuyên suốt trong quá trình thực hiện
các công việc kế toán và lập các báo cáo tài chính nhằm đảm bảo độ tin cậy thông
tin tài chính kế toán cung cấp cho nhiều đối tượng khác nhau. Có nhiều nguyên tắc
kế toán nhưng cơ bản nhất và quan trọng nhất vẫn là 7 nguyên tắc sau: Nguyên tắc
giá gốc, nguyên tắc phù hợp, nguyên tắc nhất quán, nguyên tắc thận trọng, nguyên
tắc trọng yếu, nguyên tắc cơ sở dồn tích, nguyên tắc hoạt động lên tục.

1. Nguyên tắc khách quan

Các báo cáo tài chính, tài liệu của một tổ chức dựa trên bằng chứng vững chắc,
khách quan. Mục đích đằng sau nguyên tắc này là để giữ cho việc quản lý và bộ
phận kế toán của một doanh nghiệp hoàn toàn độc lập khách quan khi đưa ra các
báo cáo tài chính.
Ví dụ, nếu quản lý tin rằng công ty có thể sớm nhận được một khoản tiền lớn từ một
vụ kiện, công ty có thể ghi nhận trước khoản này, mặc dù bằng chứng rằng một kết
quả như vậy có thể không xảy ra. Một quan điểm khách quan hơn sẽ phải chờ đợi
thêm thông tin đáng tin cậy hơn mới ghi nhận. Điều này xảy ra khi các nhà quản lý
có cổ phần trong công ty, họ muốn làm cho báo cáo tài chính “đẹp” hơn trong mắt
các nhà đầu tư.

2. Nguyên tắc phù hợp

– Việc ghi nhận doanh thu và chi phí phải phù hợp với nhau. Khi ghi nhận một khoản
doanh thu thì phải ghi nhận một khoản chi phí tương ứng có liên quan đến việc tạo ra
doanh thu đó. Chi phí tương ứng với doanh thu gồm chi phí của kỳ tạo ra doanh thu
và chi phí của các kỳ trước hoặc chi phí phải trả nhưng liên quan đến doanh thu của
kỳ đó.
– Chi phí tương ứng với doanh thu bao gồm:
23 Chi phí của kì tạo ra doanh thu, đó là các chi phí đã phát sinh thực tế trong kì
và liên quan đến việc tạo ra doanh thu của kì đó.
24 Chi phí của các kì trước hoặc chi phí phải trả nhưng liên quan đến doanh thu
của kì đó.
Như vậy, chi phí được ghi nhận trong kì là toàn bộ các khoản chi phí liên quan đến
việc tạo ra doanh thu và thu nhập của kì đó không phụ thuộc khoản chi phí đó được
chi ra trong kì nào
Quy định hạch toán phù hợp giữa doanh thu và chi phí nhằm xác định và đánh giá
đúng kết quả kinh doanh của từng thời kì kế toán giúp cho các nhà quản trị có
những quyết định kinh doanh đúng đắn và có hiệu quả.
– Ví dụ:
1. Coong ty xuất kho công cụ dụng cụ sử dụng cho 2 kỳ (tháng) , giá trị công cụ dụng
cụ xuất kho 30.000.000. Trong trường hợp này theo nguyên tắc phù hợp, giá trị công
cụ dụng cụ được ghi nhận vào chi phí 1 kỳ chỉ có 15.000.000 đồng, phần còn lại chỉ
được ghi nhận ở kỳ tiếp theo, do vậy nghiệp vụ này được định khoản như sau:

– Khi xuất để ra khỏi kho đề đưa vào sử dụng, kế toán hạch toán:

60
Nợ TK 242 – Chi phí trả trước ngắn hạn: 30.000.000
Có TK 153 – Công cụ, dụng cụ: 30.000.000
– Cuối mỗi tháng, kế toán hạch toán chi phí phân bổ CCDC trong kỳ:
Nợ TK 627/641/642 – Theo bộ phận sử dụng CCDC : 15.000.000 Có
TK 242 – Chi phí trả trước ngắn hạn: 15.000.000

23Tháng 1 thu tiền cho thuê văn phòng trong 3 (T1+T2+T3) tháng là 30.000.000
đồng, mặc dù tiền thu được ở T1 là 30.000.000 đồng, tuy nhiên theo nguyên tắc phù
hợp, doanh thu ghi nhận phải đúng kỳ. Do vậy, tháng 1 này chỉ ghi vào doanh thu
10.000.000, phần còn lại được ghi vào TK 3387 và phân bổ dần cho các tháng tiếp
theo.

24Nguyên tắc nhất quán

Các chính sách và phương pháp kế toán doanh nghiệp đã chọn phải được áp dụng
thống nhất ít nhất trong một kỳ kế toán năm. Trường hợp có thay đổi chính sách và
phương pháp kế toán đã chọn thì phải giải trình lý do và ảnh hưởng của sự thay đổi
đó trong phần thuyết minh báo cáo tài chính.
– Theo nguyên tắc nhất quán, các chính sách, phương pháp kế toán doanh nghiệp đã
chọn phải được áp dụng nhất quán từ kì này sang kì khác. Chỉ nên thay đổi chính
sách và phương pháp kế toán khi có lý do đặc biêt và ít nhất phải sang kỳ kế toán sau.
Trường hợp có sự thay đổi chính sách và phương pháp kế toán đã chọn, phải giải
trình lý do ( Thông báo với cơ quan thuế) và công bố đầy đủ ảnh hưởng của sự thay
đổi đó về giá trị trong các báo cáo tài chính.
– Nguyên tắc nhất quán đảm báo cho thông tin mang tính ổn định và có thể so sánh
được giữa các kỳ kế toán với nhau và giữa kế hoạch, dự toán với thực hiện. Trường
hợp thay đổi chính sách và phương pháp kế toán thường do doanh nghiệp chuyển
đổi hình thức sở hữu, thay đổi kế toán…
– Ví dụ: Có nhiều phương pháp tính khấu hao tài sản cố định; tính giá trị hàng tồn
kho khi cuối kỳ… Mỗi phương pháp sẽ mang lại một con số khác nhau về chi phí và
lợi nhuận, áp dụng phương pháp nào là tùy thuộc vào điều kiện cụ thể của từng
doanh nghiệp vì tất cả các phương pháp đó đều được công nhận, nhưng theo nguyên
tắc này, kế toán đã lựa chọn áp dụng phương pháp nào thì phải áp dụng nhất quán
trong các kỳ kế toán trong năm tài chính.

4. Nguyên tắc thận trọng

– Nội dung Thận trọng là việc phải xem xét, cân nhắc, có những phán đoán cần thiết
để lập các ước tính kế toán trong các điều kiện không chắc chắn. Nguyên tắc thận
trong yêu cầu việc ghi tăng vốn chủ sở hữu chỉ được thực hiện khi có bằng chứng
chắc chắn, còn việc ghi giảm vốn chủ sở hữu phải được ghi nhận từ khi có chứng cứ
về khả năng có thể xảy ra.
– Đặc điểm Theo nguyên tắc thận trọng, kế toán cần:
23 Phải lập các khoản dự phòng đúng nguyên tắc quy định: lập dự phòng không
phản ánh cao hơn giá trị tài sản thực tế có thể thực hiện. Do thực tế các khoản tổn thất
đã phát sinh (hoặc nhiều khả năng đã phát sinh) nên cần phải lập dự phòng (trích vào

61
chi phí) để đảm bảo tính phù hợp giữa doanh thu và chi phí thực tế. Đảm bảo tính
đúng kỳ của chi phí.
Lập dự phòng còn đảm bảo doanh nghiệp không có sự biến động lớn về vốn kinh
doanh (có nguồn để bù đắp) khi xảy ra tổn thất.
23 Không đánh giá cao hơn giá trị của các tài sản và các khoản thu nhập.
24 Không đánh giá thấp hơn giá trị của các khoản nợ phải trả và chi phí.
25 Doanh thu và thu nhập chỉ ghi nhận khi có các bằng chứng chắc chắn.
26 Chi phí phải được ghi nhận khi có bằng chứng về khả năng phát sinh chi phí.
Tuân thủ nguyên tắc thận trọng sẽ giúp cho doanh nghiệp bảo toàn nguồn vốn, hạn
chế rủi ro và khả năng hoạt động liên tục.
– Ví dụ: Doanh nghiệp xuất bán 2.000 xe ô tô các loại, thời hạn bảo hành là 3 năm.
Tại thời điểm bán xe chưa phát sinh chi phí bảo hành sửa chữa nhưng theo nguyên
tắc thận trọng doanh nghiệp phải trích trước chi phí bảo hành Nợ 335 / Có 641

5. Nguyên tắc trọng yếu

– Nội dung Nguyên tắc trọng yếu chỉ rõ kế toán phải thu thập, xử lý và cung cấp đầy
đủ những thông tin có tính chất trọng yếu, còn những thông tin không mang tính
chất trọng yếu, ít có tác dụng hoặc có ảnh hưởng không đáng kể tới quyết định của
người sử dụng thì có thể bỏ qua.
– Đặc điểm Thông tin được coi là trọng yếu trong trường hợp nếu thiếu thông tin
hoặc thông tin thiếu độ chính xác có thể làm sai lệch đáng kể Báo cáo tài chính, làm
ảnh hưởng đến quyết định kinh tế của người sử dụng thông tin. Tính trọng yếu của
thông tin được xem xét trên cả phương diện định lượng và định tính, nó phụ thuộc
vào độ lớn và tính chất thông tin hoặc các sai sót kế toán được đánh giá trong hoàn
cảnh cụ thể
Nguyên tắc này được kế toán vận dụng vào trong việc trình bày trên báo cáo tài
chính. Những khoản mục có cùng nội dung, bản chất kinh tế, không phụ thuộc vào
quy mô có thể gộp lại thành một khoản mục. Song bên cạnh đó, có những khoản mục
quy mô nhỏ nhưng lại có nội dung, bản chất kinh tế riêng biệt, mang tính trọng yếu
và phải được trình bày riêng biệt trên BCTT.
– Ví dụ. Trong Báo cáo tài chính của doanh nghiệp X một số khoản mục có cùng
nội dung bản chất kinh tế được gộp vào một khoản mục và được giải trình trong
Thuyết minh báo cáo tài chính. Chẳng hạn như: trong phần tài sản: Tiền mặt, tiền gửi
ngân hàng, tiền đang chuyển được gộp chung vào một khoản mục: Tiền và các khoản
tương đương tiền; Nguyên vật liệu, công cụ dụng cụ, hàng hóa, hàng gửi bán, hàng
hóa kho bảo thuế…được gộp chung vào một khoản mục: Hàng tồn kho;…

6. Nguyên tắc cơ sở dồn tích

Mọi nghiệp vụ kinh tế, tài chính của doanh nghiệp liên quan đến tài sản, nợ phải trả,
nguồn vốn chủ sở hữu, doanh thu, chi phí phải được ghi sổ kế toán vào thời điểm
phát sinh, không căn cứ vào thời điểm thực tế thu hoặc thực tế chi tiền hoặc tương
đương tiền. Báo cáo tài chính lập trên cơ sở dồn tích phản ảnh tình hình tài chính của
doanh nghiệp trong quá khứ, hiện tại và tương lai

62
7. Nguyên tắc hoạt động liên tục

Báo cáo tài chính phải được lập trên cơ sở giả định là doanh nghiệp đang hoạt động
liên tục và sẽ tiếp tục hoạt động kinh doanh bình thường trong tương lai gần, nghĩa
là doanh nghiệp không có ý định cũng như không buộc phải ngừng hoạt động hoặc
phải thu hẹp đáng kể quy mô hoạt động của mình. Trường hợp thực tế khác với giả
định hoạt động liên tục thì báo cáo tài chính phải lập trên một cơ sở khác và phải giải
thích cơ sở đã sử dụng để lập báo cáo tài chính.
– Đặc điểm Giả thiết doanh nghiệp hoạt động liên tục liên quan đến việc phản ánh tài
sản, thu nhập, chi phí của doanh nghiệp theo giá gốc không phản ánh theo giá thị
trường. Mặc dù, giá thị trường của của những tài sản mà doanh nghiệp mua về có thể
thay đổi theo thời gian. Giả thiết này được đặt ra với lập luận doanh nghiệp hoạt
động liên tục nên tài sản được sử dụng cho hoạt động sản xuất kinh doanh và không
được bán nên giá thị trường của tài sản là không phù hợp và không cần thiết để phản
ánh. Nếu phản ánh tài sản theo giá thực tế, báo cáo tài chính của đơn vị chỉ phản ánh
được tình hình tài chính của doanh nghiệp ở thời điểm hiện tại mà thôi. Nguyên tắc
này còn làm cơ sở cho các phương pháp tính hao mòn để phân chia giá trị tài sản cố
định vào các chi phí hoạt động của doanh nghiệp theo thời gian hoạt động của nó.
Trường hợp, khi doanh nghiệp chuẩn bị bán, sát nhập, giải thể…thì nguyên tắc hoạt
động liên tục sẽ không được vận dụng vào việc lập báo cáo tài chính. Ở đây, các tài
sản của doanh nghiệp sẽ phản ánh theo giá thị trường.
– Ví dụ: Cty TNHH ABC hoạt động sản xuất: Khi nhập một máy XYZ trị giá 110
triệu đồng trong đó thuế GTGT là 10 triệu đồng, chi phí vận chuyển là 11 triệu
đồng.chi phí chạy thử là 5,5 triệu đồng (chi phí đó bao gồm cả thuế GTGT). Thuế
GTGT tính theo phương pháp khấu trừ. Máy XYZ được định rõ là khấu hao hết trong
5 năm hoat động liên tục. Trường hợp Cty TNHH ABC đang hoạt động bình thường,
thì theo nguyên tắc hoạt động liên tục báo cáo tài chính được ghi nhận tài sản theo giá
gốc. Như vây ta có: Nguyên giá máy XYZ = 110/1,1 + 11/1,1 + 5,5/1,1 = 115 (triêu
đồng) Trường hợp sau 2 năm sử dụng máy XYZ thì Cty TNHH ABC có nguy cơ bi
phá sản, khi đó phần còn lại sau khi bi khấu hao là : 115: 5)*3 =69 (triệu đồng) Khi
đó, trong bản báo cáo tài chính sẽ ghi giá của máy XYZ là: Nguyên giá máy XYZ =
69 triệu đồng (Hoặc theo giá thị trường).

8. Nguyên tắc giá gốc

Theo nguyên tắc này, tài sản phải được kế toán theo giá gốc, trong đó giá gốc của
tài sản được tính theo số tiền hoặc tương đương tiền mà doanh nghiệp đã trả, phải
trả hoặc tính theo giá trị hợp lý của tài sản đó vào thời điểm tài sản được ghi nhận.
Giá gốc của tài sản không được thay đổi trừ khi có quy định khác trong chuẩn mực
kế toán cụ thể.
Giá trị các chỉ tiêu về tài sản, công nợ, chi phí,… được phản ánh theo giá ở thời
điểm mua tài sản đó, không phải giá trị tại thời điểm xác định giá tài sản tính theo
giá thị trường. Nguyên giá của tài sản cố định hữu hình mua ngoài được doanh
nghiệp xác đinh dựa vào nguồn hình thành tài sản:
Nguyên giá = Giá mua tính trên hóa đơn + Chi phí lắp đặt, chạy thử – Chiết khấu
giảm giá (nếu có)

63
– Ví dụ: Ngày 1/1/2019, công ty Dân Tài Chính mua 1 chiếc xe ôtô tải để phục vụ
quá trình sản xuất kinh doanh. Giá mua là 10 tỷ đồng (chưa có thuế GTGT), thuế
GTGT 10%. Chi phí lắp đặt, chạy thử là 100 triệu đồng (đã bao gồm thuế GTGT là
10%). Nếu tính giá của tài sản theo phương pháp khấu trừ thuế GTGT: Giá gốc của
chiếc ô tô = 10.000 + 100
Đến ngày 12/12/2019, giá ngoài thị trường của chiếc ô tô tăng lên là 11.000 triệu
đồng. Tuy nhiên, theo nguyên tắc giá gốc, giá của chiếc ô tô vẫn được ghi nhận là
giá tại thời điểm công ty Dân Tài Chính mua nó (vẫn là 10.100tr), không phụ thuộc
vào biến động của thị trường.

9. Nguyên tắc công khai

Nguyên tắc này đòi hỏi báo cáo tài chính của doanh nghiệp phải rõ ràng, dễ hiểu và
phải bao gồm đầy đủ các thông tin liên quan đến các hoạt động của doanh nghiệp.
Những báo cáo này phải được trình bày công khai cho tất cả những người sử dụng.

10. Thực thể kinh doanh

Thực thể kinh doanh là bất kỳ một đơn vị kinh tế nào nắm trong tay các tiềm lực và
tiến hành các hoạt động kinh doanh cần phải ghi chép, tổng hợp báo cáo.

11.Thước đo tiền tệ

Là đơn vị đồng nhất trong việc tính toán, ghi chép các nghiệp vụ kinh tế phát sinh,
kế toán chỉ phản ánh những gì biểu hiện được bằng tiền. Tiền được sử dụng như
một đơn vị đo lường cơ bản trong các báo cáo tài chính.

12. Kỳ kế toán

Là những khoản thời gian nhất định mà trong đó các báo cáo tài chính được lập. Để
thuận lợi cho việc so sánh, thời gian của các kỳ kế toán thường dài như nhau (tháng,
quý, năm)

https://www.dantaichinh.com/nguyen-tac-ke-toan/

F. WRITING
In the present years, there has been raised the debate on the conversion of GAAP
(Generally Accepted Accounting Principles) to IFRS (International Financial
Reporting Standards). Companies are using a system of inconsistent accounting
standards for their financial reporting. Compare and contrast GAAP and IFS

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 UNIT 6: FINANCIAL STATEMENTS

A. READING
If you walked into any accounts office twenty years ago, you would have seen piles
of financial statements and reports in every corner. However, now, there is an
increasing trend towards the paperless office.

Accounting teams, much like other office workers, are using electronic copies to
replace the traditional hard copies of everything from tax returns to financial
statements. But how has this electronic revolution changed the accountant’s
working day?

As you can imagine, accounting especially for larger corporations generates a lot of
paperwork. The actual accounts are only a small portion of the accounting records.
To start with each transaction has to bemeticulously recorded which before
computerized programmes meant a large number of ledgers. These books were the
basis for the accounts so it was essential that they were accurately maintained. Each
accounting function would operate a different set of ledgers which would then be
reconciled in the process of generating the final accounts.

In each set of accounts, for each company the accounting firm had to prepare the
workings, otherwise known as T-accounts, the trial balance summarizing these
accounts, the bank reconciliations showing the cash in hand, adraft set of
accounts and of course the approved set of accounts, with accompanyingnotes to
the accounts and this was just the beginning.

Each company was also expected to keep records of all tax matters, in case of the
need to produce them for an audit. This meant hundreds or even thousands of

65
receipts, bills and invoices. All of which were summarized on the tax returns, again
more paper.

Additionally if a company made use of management accounting services, the number

of reports which were produced increased dramatically. Although these management
reports were only internal and as such did not need to beretained by law, it was
common practice for companies to store these along with the accounting records for
that year thus allowing easy reference.

All in all, a lot of paperwork was generated by the act of accounting which was not
a problem until it came time to find a certain piece of information from a previous
year. Then, accountants were completely reliant on the filing clerks who knew the
system – but if something went wrong it could take weeks to find the right
document.

The electronic revolution in accounting started with the invention of spreadsheets,

which allowed bookkeepers to perform complex calculations without the need of a
calculator. This greatly speeded up the process of reconciliation. Instead of waiting
until after all figures had been entered into the ledgers to see if the accounts
balanced a bookkeeper could keep track of the balance after each entry.

Of course spreadsheets had their limitations as it still required the user to manually
post each transaction using the double entry system and as such the process still
requires a skilled bookkeeper to ensure that no errors occur.

With the development of computerized accounting programmes such as SAGE, the

double-entry system has been automated and the user need only enter the transaction
once and the second side will be automatically posted into the correct account.
These systems make the process of report generation much faster as all of the data is
stored and can be extracted in a variety of methods, by various criteria thus reports
for any given period can be generated almost instantly. The one disadvantage of
computerized accounting programmes comes from the difficulty incross-checking
journal entries for irregularities as the data is presented as a list of transactions
rather than being clearly visible as a set of T-accounts. As such many experienced
accountants still use hard copies for ledger control.

Even governmental institutions have started accepting returns filed online which
eliminates the need for a printed hard copy at all although, it is still advisable to
keep a copy of any important document – just in case.

B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

0 bank reconciliation: the process of comparing the actual state of the bank
account with the bank nominal code in the accounts

66
After James had finished the bank reconciliation, it became clear the company had
a major cash flow problem.

0 cash in hand the amount of liquid equity held by an entity at a certain point of
time
The accounts showed a large profit for the year, but as the company had spent a lot
on new assets there was a lack of cash in hand.

1 cross-check verify by comparing two sets of data

Each month the accounts supervisor cross-checks the records which were posted
against the nominal code assigned.

0 Draft: a first version

The financial director looked at the draft set of accounts and then approved them.

0 invoice the written record of a payment due, which is sent to the customer before
payment
The company issued a pro-forma invoice, with 14-day payment terms, when the
order was confirmed.

1 irregularities Defects, failures of mistakes

If the IRS finds any irregularities in your tax calculations, you can be fined.

0 keep track of follow, or pay attention to (particularly in changeable situations)

Working in a multi-national accounting department, you should keep track of the
exchange rate at all times.

1 ledger control a process in which totals from subsidiary nominal accounts are
entered into a control account to make it easier to interpret the data
The financial controller does the ledger control for the company as the first step in
his management accounting.

2 ledgers accounting books in which accounts were prepared

Each accounting function maintains a separate ledger.

meticulously very careful, paying attention to every detail

The auditors meticulously studied the accounting records looking for anything
suspect.

notes to the accounts additional information added at the end of the accounts to give
a full understanding of the company’s situation
The management board studied the notes to the accounts to make sure they
understood the workings properly.

receipt the written record of a payment made, which is given to the customer after
payment

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The company will only reimburse staff for petty cash purchases if they provide a
receipt.

Retain: keep in one’s possession

Mr Smith decided not to invest the profit from the last year so he retained it in his
bank account.

to file officially submit a document to a legal entity

The latest date for filling your tax return is the 31stof March, so ensure that you
have it finished and sent by the 29th.

to post enter or record (a financial transaction)

Peter was posting the previous day’s sales into the system when his manager
arrived.

C. DISCUSSION
What are the advantages and disadvantages of computerized accounting
programmes over traditional manual accounting?

Why do you think companies are changing to a paperless office?

Do you think it is important to keep a hard copy of financial records even if you are
using a computerized system? Why/ why not?

What are different types of financial statements?

E. PRACTICES
I. Read and translate the text below. Match the terms with their definitions (A-
J) to (1-10).

Elements of Financial Statements

The Financial Accounting Standards Board (FASB) has defined the following
elements of financial statements of business enterprises: assets, liabilities, equity,
revenues, expenses, gains, losses, investment by owners, distribution to owners, and
comprehensive income. According to FASB, the elements of financial statements are
the building blocks with which financial statements are constructed. These FASB
definitions, articulated in its "Elements of Financial Statements of Business
Enterprises," are as follows:
1 ( ) … are probable future economic benefits obtained or controlled by a particular
entity as a result of past transactions or events.

2 ( ) … is the change in equity (net assets) of an entity during a period from

transactions and other events and circumstances from non owner sources. It

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includes all changes in equity during a period except those resulting from
investments by owners and distributions to owners.

3 ( ) … are decreases in net assets of a particular enterprise resulting from

transferring assets, rendering services, or incurring liabilities to owners.
Distributions to owners decrease ownership interest or equity in an enterprise.

4 ( ) … is the residual interest in the assets of an entity that remains after deducting
its liabilities. In a business entity, equity is the ownership interest.

5 ( ) … are outflows or other uses of assets or incurring of liabilities during a

period from delivering or producing goods or rendering services, or carrying out
other activities that constitute the entity's ongoing major or central operation.

6 ( ) ... are increases in equity (net assets) from peripheral or incidental transactions
of an entity and from all other transactions and other events and circumstances
affecting the entity during a period except those that result from revenues or
investments by owner.

7 ( ) … are increases in net assets of a particular enterprise resulting from transfers

to it from other entities of something of value to obtain or increase ownership
interest (or equity) in it.

8 ( ) ... are probable future sacrifices of economic benefits arising from present
obligations of a particular entity to transfer assets or provide services to other
entities in the future as a result of past transactions or events.

9 ( ) … are decreases in equity (net assets) from peripheral or incidental

transactions of an entity and from all other transactions and other events and
circumstances affecting the entity during a period except those that result from
expenses or distributions to owners.

10 ( ) ... are inflows or other enhancements of assets of an entity or settlement of its

liabilities (or a combination of both) during a period from delivering or producing
goods, rendering services, or other activities that constitute the entity's ongoing
major or central operations.
Equity
Gains
Assets
Distribution to owners
Investments by owners
Liabilities
Comprehensive income
Losses
Revenues
Expenses

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Match the words with their partners, and then look at the statements again to
check

1 consolidated a. assets
2 retained b. receivables
3 current c. liabilities
4 common d. stock
5 total e. gains
6 accumulated f. affiliates
7 intangible g. earnings

Now match the word partners to their definitions.

a An asset which does not have a physical nature (such as a trademark or a patent).
b The holding company owns a minority interest (less than 50%), but the accounts
are nevertheless consolidated.
c The total legal obligations of a company to pay other parties.
d The ordinary shares held by the owners, who therefore are the last to receive their
money back in the event of liquidation.
e Amounts that will be collected in the normal course of business within one year. f
Profit which is not paid out to shareholders in the form of dividends, but instead is
kept by the company to reinvest or pay off debts.
g The amounts affecting common stockholders, but not from movements in the
stock of the company (e.g. currency translation adjustments).

The U.K. and the U.S.A. often have different terms for the same thing. Here are
some important examples. Can you think of any others?

U.K. U.S.A. Your language

Balance Sheet Statement of Financial

Profit and Loss Statement Position
shareholder Statement of Earnings
inventory stockholder
leverage stock
gearing
assets

We often make comparisons when talking about financial statements.

Which sentences (a–h) can be used to describe and compare the figures?
1 Net earnings a It’s better than last year.
5 Total revenues b It’s gone downsince last year
2 Interest and financial charges c There’s quite a drop from2005 to
6 Dividends declared per share 2006

70
3 Basic earnings per share (2005 and 2006)
7 Other costs and expenses
4 Earnings before income taxes and accounting
changes
8 Sales of services
d It’s not as low as twoyears ago.
e Slightly more this year.
f A lot more this year.
g It’s virtually the same.
h It’s exactly the same.

IV. Use words from the descriptions above to complete the table. The first one
is done for you.

VERB NOUN

to predict prediction

to ________________ 1 payment

to ________________ 2 comparison

to ________________ 3 calculation

to expect ________________ 4

to ________________ 5 indication

to ________________ 6 expansion

to perform ________________ 7

Now use verbs or nouns from above to complete the sentences. You may need
to change the form.
a The figures are a little different to what we were __________________ .
b The problems in the Middle East have made it really difficult to
__________________ next year’s turnover.
c I think there are some mistakes in the __________________ .
d The fund __________________ much better last year. This year has been very
disappointing.
e The __________________ into Eastern Europe looks good.
f We need to make sure that our customers __________________ us on time.

V. Fill in the missing entries in the Balance Sheet below. Choose from the
following.

71
  Amounts owned by related  Called up share capitals;
companies;  Development costs;
 Creditors: amounts failing due  General reserve;
after one year;  Profit and loss account;
 Fixtures and fittings;  tangible assets
 Net current assets;
 Stock;

£000’s
£ £ £
Fixed assets
Intangible Assets
(1)______________________ 180
Goodwill 40 220
(2)______________________
Land and buildings 600
(3)______________________ 20 620
Investments
Shares in related companies 4.100
Loans to related companies 59 4.159 4.999
Current Assets
(4)______________________
Raw materials 600
Finished goods 800 1.400
Debtors
Trade debtors 1.200
(5)______________________ 400
Called up share capital not paid 500
Prepayments 400 2.500
Creditors: amounts falling due within one year

Debentures 600
Bank overdrafts 50
Bills of exchange payable 50 700
(6)_____________________ 3.200
Total Assets Less Current Liabilities 8.199
(7)_____________________
Debentures 100
Bank loans 100 200 7.999
Capital and Reserves

(8)_____________________ 6.000
Other Reserves:
Capital redemption reserve 300
(9)_____________________ 599 899

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(10)____________________
1.100
7.999

VI. Complete the sentences below. Use the key words if necessary.

The profit and loss account

Companies' annual reports contain a ………………..……….. This is a financial

statement which shows the difference between the revenues and expenses of a
period…………………………such as charities, public universities and museums
generally produce an …………………..….. If they have more income than
expenditure this is called a ………………..……rather than a profit.

At the top of these statements is ………….…………or ………..…………: the total

amount of money received during a specific period. Next is the ………….……,
also known as ……………..…..(COGS): the costs associated with making the
products that have been sold, such as raw materials, labour, and factory expenses.
The difference between the sales revenue and the cost of sales is ………….……..
There are many other costs or expenses that have to be deducted from gross profit,
such as rent, electricity and office salaries. These are often grouped together as
……….………..(SG&A).

The statement also usually shows …………………..…..(earnings before interest,

tax, depreciation and amortization) and ………….……………(earnings before
interest and tax). The first figure is more objective because depreciation and
amortization expenses can vary depending on which system a company uses.

After all the expenses and deductions is the………………..…., often called the
………………..……. This profit can be distributed as dividends (unless the
company has to cover past losses), or transferred to reserves.

The cash flow statement

British and American companies also produce a ………………………. This gives

details of cash flows — money coming into and leaving the business, relating to:
………….……….— day-to-day activities; ………………….…….— buying or
selling property, plant and equipment; ……………………….— issuing or repaying
debt, or issuing shares.

The cash flow statement shows how effectively a company generates and manages
cash. Other names are sometimes used for it, including……………….………and
source and application of funds statement.

British companies also have to produce a …………….……..(STRGL), showing

73
any gains and losses that are not included in the profit and loss account, such as the
revaluation of fixed assets.

VII. British English or American English?

net profit
net income
profit and loss account
income statement

VIII. Which figure in each of the following pairs is higher for a profitable
company?

1. cost of sales or sales revenue — . . .

cost of sales
sales revenue

gross profit or net profit — . . .

net profit
gross profit

EBIT or EBITDA — . . .

EBITDA
EBIT

net profit or pre-tax income — . . .

pre-tax income
net profit

income tax or net profit — . . .

net profit
income tax

X. Complete the text with words below.

1. . . . means making money by o Operations

selling goods and services. o Investing
2 . . . is spending cash, for the o Financing
business's future growth, including
cash acquired by selling assets.
3. . . . involves raising money by
issuing stocks and bonds (and also

74
paying dividends and interest and
repaying bonds).
It is better for the company if it can
pay for future growth out of money
from . . . , without having to use
financing.
So, a 'healthy' cash flow means that the
amount of cash provided by operations
is greater than the cash used for . . . .

XI. Would the following appear as operating, financing or investing activities

on a cash flow statement?

1. Changes in operating assets and a. investing activities

liabilities — . . . b. operating activities
2. Dividends paid — . . . c. financing activities
3. Purchase of plant and equipment — .
..
4. Net income — . . .
5. Issuance of stock — . . .
6. Payments to repurchase stock — . . .
7. Sale of property — . . .
8. Depreciation and amortizations
expenses — . . .
9. Income taxes payable — . . .
10. Repayment of debt — . . .

E. TRANSLATION
Translate the following text into English

KHÁI NIỆM VỀ BÁO CÁO TÀI CHÍNH VÀ Ý NGHĨA CỦA BCTC ĐỐI
VỚI DOANH NGHIỆP

Đọc và phân tích báo cáo tài chính (BCTC) là một trong những công việc cần thiết
đối với mỗi kế toán và lãnh đạo doanh nghiệp. Vậy báo cáo tài chính là gì và có ý
nghĩa như thế nào, dưới đây sẽ là một số thông tin cơ bản giúp kế toán và lãnh đạo
doanh nghiệp hiểu rõ hơn về BCTC
1. Khái niệm báo cáo tài chính (BCTC)
Báo cáo tài chính (BCTC) được xem như là hệ thống các bảng biểu, mô tả thông tin
về tình hình tài chính, kinh doanh và các luồng tiền của doanh nghiệp. Báo cáo tài
chính những báo cáo tổng hợp nhất về tình hình tài sản, vốn chủ sở hữu và nợ phải
trả cũng như tình hình tài chính, kết quả kinh doanh trong kỳ của doanh nghiệp. Nói

75
theo một cách khác thì báo cáo tài chính là một phương tiện nhằm trình bày khả
năng sinh lời và thực trạng tài chính doanh nghiệp tới những người quan tâm (chủ
DN nhà đầu tư, nhà cho vay, cơ quan thuế và các cơ quan chức năng,…)

Theo luật của cơ quan thuế thì tất cả doanh nghiệp trực thuộc các ngành, các thành
phần kinh tế đều phải lập và trình bày báo cáo tài chính BCTC năm. Còn đối với các
công ty hay tổng công ty có các đơn vị trực thuộc, ngoài báo cáo tài chính (BCTC)
năm thì còn phải thực hiện báo cáo tài chính (BCTC) tổng hợp hay báo cáo tài chính
(BCTC) hợp nhất vào cuối kỳ kế toán năm dựa trên báo cáo tài chính của các đơn vị
trực thuộc.

Đối với các doanh nghiệp trực thuộc nhà nước và các doanh nghiệp niêm yết trên thị
trường chứng khoán thì sao? Các doanh nghiệp này ngoài báo cáo tài chính (BCTC)
năm phải lập thì các doanh nghiệp này phải lập thêm BCTC giữa niên độ (báo cáo
quý – trừ quý 4) dạng đầy đủ. Riêng đối với Tổng công ty trực thuộc Nhà nước và
các doanh nghiệp nhà nước có các đơn vị kế toán trực thuộc phải lập BCTC tổng hợp
hoặc BCTC hợp nhất (BCTC hợp nhất giữa niên độ được thực hiện bắt buộc từ năm
2008).
2. Thời gian nộp báo cáo tài chính đối với các doanh nghiệp
Thời gian nộp báo cáo tài chính (BCTC) đối với các doanh nghiệp như sau:

Doanh nghiệp trực thuộc nhà nước được quy định như sau:

Sau 20 ngày đối với báo cáo quý – kể từ ngày kết thúc quý.
Sau 30 ngày đối với báo cáo năm – kể từ sau ngày kết thúc năm tài chính.

Các tổng công ty, thời hạn gửi BCTC:

Sau 45 ngày đối với báo cáo quý – kể từ ngày kết thúc quý.
Sau 90 ngày đối với báo cáo năm, kể từ ngày kết thúc năm tài chính.

Với các đơn vị kế toán trực thuộc:

Nộp BCTC quý, năm cho đơn vị kế toán cấp trên theo thời hạn do đơn vị cấp trên
quy định.

Các DN tư nhân, các công ty hợp danh:

Sau 30 ngày – kể từ ngày kết thúc năm tài chính.

Các DN khác còn lại:

76
Sau 90 ngày kể từ ngày kết thúc năm tài chính.

3. Ý nghĩa của Báo cáo tài chính (BCTC)

Báo cáo tài chính (BCTC) có ý nghĩa quan trọng đối với công tác quản lý của doanh
nghiệp cũng như các cơ quan chủ quản và các đối tượng quan tâm tới doanh nghiệp.
Điều đó được thể hiện chi tiết rõ ràng nhất ở những vấn đề sau đây:

Báo cáo tài chính (BCTC) là những báo cáo được trình bày hết sức tổng quát,
phản ánh tổng quan nhất về tình hình tài sản, tài chính, các khoản nợ, nguồn
hình thành tài sản và kết quả kinh doanh trong kỳ của doanh nghiệp.
Báo cáo tài chính (BCTC) cung cấp những thông tin tài chính chủ yếu để nhằm
đánh giá tình hình, kết quả hoạt động sản xuất kinh doanh, thực trạng tài chính
của doanh nghiệp trong kỳ đã qua, BCTC nhằm hỗ trợ cho việc kiểm tra, giám
sát tình hình sử dụng vốn và khả năng huy động nguồn vốn vào hoạt động kinh
doanh của doanh nghiệp.
Báo cáo tài chính (BCTC) có tầm quan trọng trong việc phân tích, nghiên cứu,
phát hiện những khả năng tiềm tàng, bên cạnh đó nhằm đề ra các quyết định về
quản lý, điều hành hoạt động SXKD hoặc đầu tư của chủ sở hữu, các nhà đầu
tư, các chủ nợ hiện tại và tương lai của DN.
Báo cáo tài chính (BCTC) còn là những căn cứ vô cùng quan trọng để đánh giá
đúng cũng như xây dựng các kế hoạch kinh tế – kỹ thuật, tài chính của DN
giúp nâng cao hiệu quả sử dụng vốn, nâng cao hiệu quả SXKD cho doanh
nghiệp.

Chính vì tầm quan trọng đã nêu trên mà báo cáo tài chính (BCTC) là đối tượng rất
được sự quan tâm chú ý của các nhà đầu tư, hội đồng quản trị doanh nghiệp người
cho vay, các cơ quan quản lý cấp trên và toàn bộ cán bộ, công nhân viên của doanh
nghiệp.

http://www.misa.com.vn/tin-tuc/chi-tiet/newsid/62818/Khai-niem-ve-bao-cao-tai-
chinh-va-y-nghia-cua-BCTC-doi-voi-doanh-nghiep

F. WRITING
In your experience, what do people think of the work done by accountants? What do
they generally think about financial statements? How can accountants make the
numbers they produce easier to understand?

77
 UNIT 7: THE ACCOUNTING EQUATION

A READING
Financial accounting is an area which can be explained simply by using the
accounting equation, which is assets = liabilities + capital.

But what does that really mean? To understand the significance of the equation, first
we must explore the meaning of the three words; assets, liabilities and capital. These
terms are often used in accounting but can have very different meanings.

In general, assets are something of value to the company but usually when we think
of assets we think ofcurrent and fixed assets. However, in the accounting equation
we should also take longterm and intangible assets into consideration as they all fall
into the category of assets and thus add value to an entity. Intangible assets can be
hard to quantify as we are often unable to compare them with the market. Intangible
assets include such things as licenses, intellectual property and goodwill which
may have a specific value to the entity.

The understanding of liabilities can be even more complicated as the numerous

classifications can leave even an experienced accountant scratching his head. These
classifications vary by region, but are based along the lines of: fixed, long-term,
current, trade, financial and contingent. Many of these appear to be self-explanatory
but when it comes to contingent liabilities it is important to remember that this is not
an actual liability, it represents a possible liability in an uncertain situation. Of
course, you can equate liabilities to negative assets.

Capital is generally understood as the money invested in the entity by the owner /
owners, but it can be so much more. Capital is divided into fixed capital which
represents the excess between the fixed assets and the fixed liabilities and working
capital which is the excess of current assets over current liabilities.

Having cleared up the terminology, we can start to explain the purpose of the
accounting equation.

78
The accounting equation is how double-entry bookkeeping is established. The
equation represents the relationship between the assets, liabilities, and owner's
equity of a small business. It is necessary to understand the accounting equation to
learn how to read a balance sheet.

The accounting equation shows what the firm owns (its assets) are purchased by
either what it owes (its liabilities) or by what its owners invest (its shareholder
equity or capital). This relationship is expressed in the form of an equation.

This equation must balance because everything the entity owns (assets) has to be
purchased with something, either a liability or owner's capital. Assets refer to items
like inventory or accounts receivable. Examples of liabilities are bank loans or
accounts payable. Owner's capital or equity is the investment or capital the owner
has in the firm.

The accounting equation can be shown in two other ways:

Liabilities = Assets - Owner's Equity

Owner's Equity = Assets - Liabilities

If you know any two of the three components of the accounting equation, you can
calculate the third component. If you look at a balance sheet, you will see that the
balance sheet is basically an extended form of the accounting equation.

There is also an expanded accounting equation which shows the relationship

between the income statement and the balance sheet. The expanded accounting
equation, after you consider sales revenue and expenses, is:

Assets = Liabilities + Owner's Equity + Revenue - Expenses -Draws

The capital or (owner's equity) part of the accounting equation can be divided into
two parts - revenue and expenses. Until now, the accounting equation has focused on
the balance sheet components. Now, splitting the owner's equity part of the
accounting equation into revenues and expenses highlights the relationship between
the balance sheet and the income statement because the key components of the firm's
income statement are revenue and expenses.

Revenues are what any given business earns from its product or service. Expenses
are what it costs the business to operate and provide the aforementioned product or
service. The relationship between revenues and expenses is simple. If revenues are
greater than expenses, the business makes a profit. If revenues are less than
expenses, the business incurs a loss.

The owner or owners of the entity may also withdraw a salary from the business. If
the company is an SME (small or medium enterprise), sole proprietorship,
partnership, or limited liability company, then the owner or owners will take a draw

79
from the business as their salaries. These drawings reduce the owner's equity in the
entity.

It's vitally important that the accounting equation balance because, if not, your
financial reports will not make sense.

B. VOCABULARY
Please find the equivalence of the 14 vocabulary terms in Vietnamese

accounting equation: the foundation of double entry accounting which shows that
all assets are either financed by borrowing money or paying with the money of the
company's shareholders
The accounting equation was the first thing I learnt on the bookkeeping course I
went on.

Capital: the total financial value of all assets less any liabilities. The net worth of a
company
After three years trading the capital of the company had increased to $100m.

contingent liabilities: a potential obligation that may be incurred depending on the

outcome of a future event
The management accountant estimated a contingent liability of $45,000 on the
purchase of the new property.

current assets: all assets that are expected to be converted into cash within one
year of normal business activity
Of course you cannot depreciate current assets as they won't be in the company a
year from now.

Draws: the withdrawal of business cash or other assets by the owner for the
personal use of the owner
The accounting team tried to explain that the owner shouldn't make so many draws
from the company as it was leading to huge losses.

Goodwill: the favour or advantage that a business has acquired especially

through its brands and its good reputation
The company had assets of $62 million excluding goodwill.

income statement: the financial statement which measures a company's financial

performance over a specific accounting period
After studying the income statement it was clear that the company was in financial
trouble.

Incur: come into or acquire (some consequence, usually undesirable)

The company has incurred taxes of $27,000 this quarter.

80
intangible asset: an asset which is not physical in nature
The valuation team had trouble valuing the intangible assets of the firm.

intellectual property: creations of the mind: inventions, literary and artistic

works, and symbols, names, images, and designs used in commerce
Lawyers and accountants in Hollywood have to be experienced in intellectual
property law.

Quantify: determine or express the quantity of

When entering a new market, you should be able to quantify the potential sales and
the risk attached to them.

shareholder equity: a firm's total assets minus its total liabilities

The board of management was delighted with the 15% rise in shareholder equity on
the past year.

sole proprietorship: a type of business entity that is owned and run by one
individual
Many people choose to form a sole proprietorship as it is the simplest form of
business entity.

Terminology: The vocabulary of technical terms used in a particular field There is

some very complicated terminology in accounting so you should make sure you have
a good dictionary.

C. DISCUSSION
What are the functions of an accounting department? Would you like to work
there? Is it difficult to prepare a balance sheet? Why?

3 Why might intangible assets be hard to quantify?

Why is the accounting equation so important?

What are the typical assets and liabilities connected to a SME?

D. PRACTICES
I. Read and answer the following questions

Company law in Britain and the Securities and Exchange Commission in the US
require companies to publish annual balance sheets: statements for shareholders and
creditors. The balance sheet is a document which has two halves. The totals of both
halves are always the same, so they balance. One half shows a business's assets,

81
which are things owned by the company, such as factories and machines, that will
bring future economic benefits. The other half shows the company's liabilities, and
its capital or shareholders' equity. Liabilities are obligations to pay other
organizations or people: money that the company owes, or will owe at a future date.
These often include loans, taxes that will soon have to be paid, future pension
payments to employees, and bills from suppliers: companies which provide raw
materials or parts. If the suppliers have given the buyer a period of time before they
have to pay for the goods, this is known as granting credit. Since assets are shown as
debits (as the cash or capital account was debited to purchase them), and the total
must correspond with the total sum of the credits - that is the liabilities and capital -
assets equal liabilities plus capital (or A = L + C).

American and continental European companies usually put assets on the left and
capital and liabilities on the right. In Britain, this was traditionally the other way
round, but now most British companies use a vertical format, with assets at the top,
and liabilities and capital below.

Shareholders' equity consists of all the money belonging to shareholders. Part of this
is share capital - the money the company raised by selling its shares. But
shareholders' equity also includes retained earnings: profits from previous years that
have not been distributed - paid out to shareholders - as dividends. Shareholders'
equity is the same as the company's net assets, or assets minus liabilities.

A balance sheet does not show how much money a company has spent or received
during a year. This information is given in other financial statements: the profit and
loss account and the cash flow statements.

Are the following statements true or false?

The totals of both halves of the balance sheet are not always the same.

British and American balance sheets show the same information, but arranged
differently.

The assets total is always the same as the liabilities total.

Liabilities are things owned by the company.

Liabilities include loans, taxes, future pension payments, and bills from suppliers.

A balance sheet shows how much money a company has spent or received during a
year.

Shareholders' equity consists of all the money belonging to shareholders.

The balance sheet gives information on how much money the company has
received from sales of shares.

82
Match the words from column a with the words from column b to make a
phrase.
A B
1) to grant a) liabilities

2) to pay b) earnings

3) to owe c) credit

4) to retain d) benefits

5) to distribute e) annual balance sheets

6) to publish f) to shareholders

7) to bring g) money
8) to belong h) profits

Study the balance sheet sample. Balance Sheet – Sample Corp. Fy 2007,
2008

12/31/2008 12/31/2007 12/31/2008 21/31/2007

ASSETS LIABILITIES
and OWNERS’
EQUITY
Current Assets Current
Liabilities
Cash $45,000 $40,000 Long-Term Debt $12,000 $11,000
– 1 Yr.
Marketable $65,000 $60,000 Notes Payable $15,000 $14,000
Securities
Accounts Receivable $85,000 $70,000 Accounts $13,000 $12,000
Payable
Notes Receivable $45,000 $40,000 Taxes Payable $11,000 $10,000

Inventories $85,000 $80,000 Accrued $21,000 $20,000

Expenses
Total Current $325,000 $290,000 Other Current $10,000 $9,000
Assets Liabilities
Total Current $82,000 $76,000

83
 Liabilities
Long-Term Assets Long-Term
Liabilities
Land $85,000 $80,000 Notes Payable $30,000 $27,000

Buildings $100,000 $90,000 Bonds Payable $60,000 $52,000

Machinery $30,000 $25,000 Total Long-Term $90,000 $79,000
Liabilities
Accumulated ($4,000) ($3,500) Other Liabilities
Depreciation
Net tangible Assets $211,000 $191,000 Pension $30,000 $30,000
Obligations
Deferred Taxes $30,000 $30,000

Intangible Assets Minority Interest $30,000 $30,000

Goodwill $15,000 $5,000 Total Other $30,000 $30,000
Liabilities
Patents $20,000 $19,000 Total Liabilities $30,000 $30,000

Trademarks $15,000 $13,400 Owners’ Equity

Organizational Costs $24,000 $22,900 Preferred Stock $60,000 $50,000
Total Intangibles $74,500 $60,300 Common Equity

Common Stock $97,500 $89,000

Other Assets Capital Surplus $111,000 $99,000

Investments $25,000 $23,000 Retained $120,000 $105,800

Earnings
Deferred Charges $50,000 $45,000 Treasury Stock $50,000 $45,000
Total Other assets $75,000 $68,000 Total Common $278,500 $248,800
Equity
Total Long-Term $360,500 $319,800 Total Owners’ $338,500 $298,800
Assets Equity
Total Assets $685,500 $609,800 Total Current $685,500 $609,800
Liabilities and
Owners’ Equity

84
IV. Complete the sentences below. Use the key words if necessary

Company law in Britain and the Securities and Exchange Commission in the US
require companies to publish annual……………………….…..: statements for
shareholders and creditors. The balance sheet is a document which has two halves.
The total of both halves are always the same, so they balance. On half shows a
business's……………..………., which are things owned by the company, such as
factories and machines that will bring future economic benefits. The other half
shows the company's………………………, and
its………………….……or………………….……..

Liabilities are obligations to pay other organizations or people: money that the
company ………………….……., or will owe at a future date. These often include
loans, taxes that will soon have to be paid, future pension payments to employees,
and bills from…………………….…….: companies which provide raw materials or
parts. If the suppliers have given the buyer a period of time before they have to pay
for the goods, this is known as………………..………. Since assets are shown as
debits (as the cash or capital account was debited to purchase them), and the total
must correspond with the total sum of the credits - that is the liabilities and capital
—……………………...

American and continental European companies usually put assets on the left and
capital and liabilities on the right. In Britain, this was traditionally the other way
round, but now most British companies use a vertical format, with assets at the top,
and liabilities and capital below.

Shareholders' equity

Shareholders' equity consists of all the money belonging to shareholders. Part of

this is ……………….……— the money the company raises by selling its shares.
But shareholders' equity also includes………………..……..: profits from previous
years that have not been…………………………..— paid out to shareholders — as
dividends. Shareholders' equity is the same as the company's net assets, or assets
minus liabilities.

A balance sheet does not show how much money a company has spent or received
during a year. This information is given in other financial statements:……………..
……and the …………………..….

…………………………..….are amount of money that a company owes, and are

generally divided into two types — …………….……..and……………………...
Long-term liabilities or non-current liabilities include bonds.

Current liabilities are expected to be paid within a year of the date of the balance
sheet. They include:…………………………..— largely suppliers of goods or
services to the business who are not paid at the time of purchase; planned

85
dividends;…………………….— money that will have to be paid as tax in the
future, although the payment does not have to be made now.

Accrued expenses

Because of the matching principle, under which transactions and other events are
reported in the periods to which they relate and not when cash is received or paid,
balance sheets usually include …………………………… These are expenses that
have accumulated or…………………….……during the accounting year but will
not be paid until the following year, after the date of the balance sheet. So accrued
expenses are ……………….………income - that is, deducted from profits — even
though the bills have not yet been received or the cash paid. Accrued expenses
could include taxes and utility bills, for example electricity and water.

Shareholders' equity on the balance sheet

……………….…………….is recorded on the same part of the balance sheet as

liabilities, because it is money belonging to the shareholders and not the company.
Shareholders' equity includes: the original share capital (money from stocks or
shares issued by the company;…………………….: money made if the company
sells shared at above their ………………………...— the value written on them;
retained earnings: profits from previous years that have not been distributed to
shareholders;………………………..: funds set aside from share capital and
earnings, retained for emergencies or other future needs.

Fixed and current assets

In accounting, assets are generally divided into fixed and current assets.
……………………………(or non-current assets) and investments, such as
buildings and equipment, will continue to be used by the business for a long
time………………………………..are things that will probably be used by the
business in the near future. They include……..……………………— money
available to spend immediately,………………………….— companies or people
who owe money they will have to pay in the near future, and stock.

If a company thinks a debt will not be paid, it has to ……………………………—

take action in preparation for the loss happening, according to the conservatism
principle. It will ……………….……, or abandon, the sum as a
……………………….., and ………………………by charging a corresponding
amount against profits: that is, deducting the amount of the debt from the year's
profits.

Valuation

Manufacturing companies generally have a stock of raw

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materials,……………………..— partially manufactured products — and products
ready for sale. There are various ways of valuing stock or inventory, but generally
they are valued at the……………………, which means whichever figure is lower:
their cost — the purchase price plus the value of any work done on the items — or
the current market price. This is another example of conservatism: even if the stock
is expected to be sold at a profit, you should not anticipate profits.

Tangible and intangible assets

Assets can also be classified as tangible and intangible.

……………………… are assets with a physical existence — things you can touch
— such as property, plant and equipment. Tangible assets are generally recorded at
their historical cost less …………….…………— the amount of their cost that has
already been deducted from profits. This gives their………………….……include
……………..- legally protected names for a company's products,
……………………..….— exclusive rights to produce a particular new product for
a fixed period, and ………………— names or symbols that are put on products and
cannot be used by other companies. Networks of contacts, loyal customers,
reputation, trained staff or 'human capital', and skilled management can also be
considered as intangible assets. Because it is difficult to give an accurate value for
any of these things, companies normally only record tangible assets. For this reason,
a going concern should be worth more on the stock exchange than simply its
…………………………….…or …………………..….: assets minus liabilities. If a
company buys another one at above its net worth — because of its intangible assets
— the difference in price is recorded under assets in the balance sheet as

British English or American English?

balance sheet
statement of financial position
shareholders' equity
stockholders' equity
share premium
paid-in surplus

VI. Are the following statements true or false?

British and American balance sheets show the same information, but arranged
differently.

The revenue of the company in the past year is shown on the balance sheet.

The two sides or halves of a balance sheet always gave the same total.

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The balance sheet gives information on how much money the company has
received from sales of shares.

The assets total is always the same as the liabilities total.

The balance sheet tells you how much money the company owes.

A current liability will be paid before the date of the balance sheet.

A liability that must be paid in 13 months time is classified as long-term.

A company's accrued expenses are like money an individual saves to pay bills in the
future.

Shareholders' equity consists of the money paid for shares, and retained
earnings.

If companies retain part of their profits, this money no longer belongs to the
owners.

Companies can sell shares at a higher value than the one stated on them.

VII. Complete the sentences.

1. . . . are companies that provide other companies with a. Liabilities

materials, components, etc. b. Assets
2. . . . are profits that the company has not distributed to
c. Shareholders’
shareholders.
3. . . . are things a company owns and uses in its business. equity
d. Retained earnings
4. . . . consist of everything a company owes.
e. Suppliers
5. . . . consists of money belonging to a company's

owners.

1. Money that will be paid in less than 12 months from the a. share premium
balance sheet date — . . . b. deferred
2. The money that investors have paid to buy newly issued
c. accrued
shares, minus the shares' face value — . Delayed, put off or
postponed until a later time — . . . d. current liabilities
3. Built up or increased over a period of time — . . .

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VIII. Choose the best answer

1. An amount of money that is owed but probably won't be paid — . . .

A. net book value B. patent C. bad debt

2. The accounting value of a company (assets minus liabilities) — . . .

A. goodwill B. net worth / net assets C. net book value

A legal right to produce and sell a newly invented product for a certain period of
time — . . .

A. patent B. trademark C. goodwill

4. The historical cost of an asset minus depreciation charges — . . .

A. net book value B. provisions C. net worth

The amount a company pays for another one, in excess of the net value of its
assets — . . .

A. goodwill B. bad debt C. good debt

A legally protected word, phrase, symbol or design used to identify a product —

...

A. trademark B. patent C. goodwill

7. To accept that a debt will not be paid — . . .

A. credit B. to make provisions C. write off

8. To deduct money from profits because of debts that will not be paid — . . .

A. work-in-progress B. to make provisions C. write off

9. Products that are not complete or ready for sale — . . .

A. work-in-progress B. trademark C. debt

The amount of money owed by customers who have bought goods but not yet paid
for them — . . .

A. bad debt B. debtors / accounts receivable C. write-off

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IX. Match the two parts of the sentences.

1. A company's value on the stock a. by deducting the amount from profits.

exchange is nearly always . . .
2. Brand names, trademarks, patents,
customers, and qualified staff . . .
3. Cash, money owed by customers, and
inventory . . .
4. Companies record inventory at the
b. are examples of tangible, fixed assets.
c. or the current market price, whichever
is lower.
d. higher than the value of its net assets.
e. current assets.

cost of buying or making the items . . . f. are examples of intangible assets.

5. Companies write off bad debts, and

make provisions . . .
6. Land, buildings, factories and

equipment . .

X. Sort the following into assets and liabilities.

Accounts payable
Accrued expenses
Dividends
Inventory
Accounts receivable
Land and buildings
Investments
Cash and equivalents
Deferred taxes
Long-term debt

Sort the following into Current, Fixed and Intangible assets.

buildings
goodwill
stock
cash in the bank
human capital
land
debtors
investments
reputation

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E. TRANSLATION
Translate the following text into English

PHƯƠNG TRÌNH KẾ TOÁN- CÔNG THỨC VÀ TÍNH CHẤT

Phương trình kế toán là gì?

Phương trình kế toán là gì? Phương trình kế toán (Fundamental accounting

equation) là một công thức kế toán tài chính được sử dụng trong cách tính toán sổ
sách của nhân viên kế toán. Nó được sử dụng để giúp các doanh nghiệp phân tích
được hiệu quả hệ thống hoạt động tài chính.

2. Bàn về công thức phương trình kế toán là gì?

Phương trình kế toán có thể nói là nền tảng cho báo cáo tài chính, giúp liên kết các
thông số và hệ thống báo cáo tài vụ với nhau. Nó là một phương trình thể hiện các
mối quan hệ về tài sản, minh họa mối liên kết về số tài sản, nợ phải trả, cổ đông và
chủ sở hữu cổ phần.

Hiệu quả phương trình kế toán là gì? Nó sẽ cho thấy được các đối tượng đối với tài
sản doanh nghiệp, thể hiện hai mặt đối lập trong doanh nghiệp. Tuy nhiên phương
trình kế toán cũng cho thấy được bạn nên cân bằng tài chính như thế nào. Tiếp theo,
bạn sẽ quyết định được nên đưa ra những giải pháp tài chính nền tảng, đề ra các
phương pháp ghi chép tài chính doanh nghiệp.

3. Các loại công thức cho phương trình kế toán là gì?

Cơ bản của công thức phương trình kế toán là gì?

Tài sản = Nợ phải trả + Vốn chủ sở hữu chủ

Các công thức mở rộng từ công thức nền tảng là:

Nợ phải trả = Tài sản – Chủ đầu tư vốn chủ sở hữu

Chủ Equity = Tài sản – Nợ phải trả

Trong đó:

Nguồn vốn chủ sử hữu: Là số tiền thực tiễn của doanh nghiệp (Khả năng
thực lực của Doanh nghiệp).
Tài sản: Là tổng tài sản hiện có trong Doanh nghiệp.
Nợ phải trả: Là nợ chiếm dụng (Nợ nhà cung cấp), Nợ tín dụng (Nợ ngân
hàng), Nợ thuế (Nợ nhà nước)

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Bảng cân đối phương trình kế toán nền tảng sẽ giúp bạn thể hiện các mối quan hệ
hoạt động tài chính trên thị trường. Bạn có thể thấy được cơ bản các giá trị tài
chính, nó đơn giản thể hiện một chức năng kinh doanh thực tế.

4. Tính chất cân đối phương trình kế toán là gì?

Từ phương trình kế toán thể hiện tính cân đối trong số dư tài nguyên còn lại trong
công ty. Tính cân đối thể hiện rõ nhất ở phương trình kế toán nền tảng.

Tính chất cân đối trong phương trình kế toán là gì

Tài sản = Nợ phải trả + Vốn chủ sở hữu chủ

Bên trái phương trình thể hiện phần Tổng tài sản mà doanh nghiệp có. Bên phải thể
hiện số nợ công ty phải trả, cũng như vốn chủ sở hữu ở bên phải. Nó thể hiện rằng
nguồn lực cung cấp cho doanh nghiệp sẽ được xây dựng nên chủ sở hữu của doanh
nghiệp và chủ nợ của họ.

Khi tổng tài sản bằng tổng nguồn vốn

Tính cân đối trong phương trình kế toán thể hiện theo 4 trường hợp. Và nó cũng thể
hiện theo 2 đối tượng: tài sản và nguồn vốn.

Tài sản tăng – Tài sản giảm

Nguồn vốn tăng – Nguồn vốn giảm

Tài sản tăng – Nguồn vốn tăng

Tài sản giảm – Nguồn vốn giảm

Khi tổng tài sản bằng nợ phải trả với nguồn vốn chủ sở hữu

Đối tượng lúc này của phương trình kế toán là gì? Đó là tài sản, nợ phải trả và
nguồn vốn. Đồng thời, nó diễn ra theo 9 trường hợp khác nhau.

Tài sản tăng – Tài sản giảm

Nguồn vốn tăng – Nguồn vốn giảm
Nợ tăng – Nợ giảm
Nguồn vốn tăng – Nợ giảm
Nguồn vốn giảm – Nợ tăng
Tài sản tăng – Nguồn vốn tăng
Tài sản tăng – Nợ tăng
Tài sản giảm – Nguồn vốn giảm
Tài sản giảm – Nợ giảm

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Và nó phân biệt thành 3 nhóm tài chính riêng biệt. Ba nhóm này sẽ giúp doanh
nghiệp phân tích rõ rành tình hình tài chính, xác định ảnh hưởng tới các đối tượng
trong phương trình kế toán là gì.

Với trường hợp (a) thì tài sản trong bảng cân đối kế toán sẽ làm ảnh hưởng
tới cấu trúc 1 phần tải sản, không phải toàn bộ. Kể cả khi các nghiệp vụ tài
chính phát sinh sự cố cũng không thể làm ảnh hưởng tới toàn bộ tài sản
doanh nghiệp.
Nó bao gồm các trường hợp (b) (c) (d) (e). Khi một nguồn vốn của doanh
nghiệp bị ảnh hưởng, không làm thay đổi cơ cấu toàn bộ nguồn vốn doanh
nghiệp. Lúc này tổng tài sản vẫn bằng tổng nguồn vốn.
Các trường hợp (f) (g) (h) (i) sẽ đồng thời làm phát sinh ảnh hưởng tới tài sản
và nguồn vốn. Các phần tài sản và nguồn vốn làm tăng hoặc giảm giá trị bằng
nhau. Khi đó, cả hai đối tượng đều thay đổi, nhưng hai phần lại bằng nhau.

https://kyna.vn/bai-viet/phuong-trinh-ke-toan-la-gi.html

F. WRITING
Study the balance sheet sample of any Vietnamese company and translate the main
items of it.

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 UNIT 8: DEPRECIATION AND AMORTIZATION

A. READING
If you ask any newly qualified accountant what they find hardest, they will almost
certainly answer depreciation andamortization. But why do people find these two
concepts so hard to master?

Well, for one thing depending on where you are located the terms may mean the
same thing, or may have decidedly different meanings.

Both depreciation and amortization are key aspects of accrual accountingand need
to be mastered by anyone wanting to make a career in accountancy. The aim of both
depreciation and amortization are to allocate the cost of an asset over the life of the
asset. To do this they need to carry over an expense account containing each year’s
depreciation figure.

As depreciation deals with tangible assets and amortization deals with intangible
assets, we usually find that depreciation is more commonly understood because we
can visualize the process easier. However, the various methods of depreciation can
confuse the matter greatly.

There are multiple methods of depreciating an asset, based either on time or the
activity of the asset. The most common of these are:

Straight line depreciation, in which the company calculates the salvage value of
the asset and then depreciates a set percentage over the useful life of that asset until
the net-book value reaches the salvage value. This is considered to be the simplest
method of depreciation, and as such is the most commonly used.

The sum-of-years-digits depreciation method is again based on time passing but is

a considerably more complicated method than the straight line method. It is used
because it results in accelerated depreciation of an asset. When using this method,
the first thing to do is to determine the year’s digits figures. For example, on an asset
with a useful life of five years these would be: 5, 4, 3, 2, 1. Then calculate the sum of
the figures, in this case 15. To get the depreciation rate we then divide the years
digits figures by the sum of figures, so in the first year the depreciation rate

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would be 5/15, in the second year 4/15 etc. The result of this is that the asset
depreciates quicker at the start of its useful life than at the end.

Annuity depreciation is a method which is not based on time, but rather on cost.
When the asset is purchased its useful life is established and from this the ‘number
of uses’ estimated. This could be miles traveled in the case of a vehicle or cycle
turns in the case of a production machine. This figure is then divided by the
difference between the cost and the salvage value of that asset, which gives a unit
cost. Each year, the depreciation is calculated on the actual usage of that asset by
multiplying the unit cost.

Units of time depreciation works along a similar principle, but instead of a unit of
use the depreciation is calculated on a unit of time. This is used particularly when
the asset is not expected to be in use for the whole linear year.

The choice of depreciation method is determined by the type of asset.

Amortization of intangible assets is calculated in a similar way to the straight line

depreciation method with the notable exception of the useful life of the asset. The
first thing to do is to determine whether the asset has an infinite or finite life. An
asset with a finite life might be constricted by laws or regulations which prohibit its
use after a certain amount of time. An asset with an infinite life, such as goodwill,
cannot be amortized. Once you have the useful life of the asset, you need to
determine the net book value of the asset, which is typically the cost of purchase.
Then amortization occurs as in the straight line method until the net book value of the
asset reaches zero at the end of its useful life. Certain intangible assets may have a
salvage value, if they are able to be re-sold at the end of their useful life. In this case,
the net book value will decline year on year until it reaches the expected re-sale price.

Both depreciation and amortization present one major problem. The total cost of the
asset is paid in full in the first year but is accounted for over the useful life of the
asset. Therefore the company's actual current cash-flow situation can be
misrepresented in the accounts during this time

B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

accelerated depreciation: a term used to show that the reduction of an assets

value happens faster at the start of its useful life than at the end
Assets like vehicles lose a lot of value in the first year of their life, which is why
accelerated depreciation is such a useful tool.

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accrual Accounting: an accounting method that measures the performance and
position of a company by recognizing economic events regardless of when cash
transactions occur
The accountant advised to operate an accrual accounting system for the small start-
up, as he said it gave a more accurate picture of the true financial state.

allocate: Distribute according to an existing plan

After studying the budget, it was clear that the marketing department had been
allocated more than was needed.

amortization: The deduction of capital expenses incurred on an intangible asset

over a specific period of time
The accounts department started the amortization process as soon as the purchase
of the licenses was finalized.

annuity depreciation: a method of depreciation centred around cost recovery

and a constant rate of return upon any asset that is being depreciated
Most production machinery is depreciated using annuity depreciation as it allows
the calculation of a per unit produced cost for the asset.

carry over: transfer a sum relating to one account to a new column, page, year
When preparing the accounts for each year, you must remember to carry over the
balances from the previous year’s depreciation account.

cash-flow: the movement of money into and out of a company, firm or legal
entity
When you apply for a bank loan, you will need to provide cash-flow records
showing your financial situation.

determined by: decided by or because of

Our decision to stop production was determined by poor sales over the past year.

divide: split into equal parts or groups

If you want to know your hourly salary, divide your weekly wage by the number of
hours you work.

finite life: a lifespan which is limited to a certain number of years, months,

weeks or days
Most assets have a finite life, as eventually they will break or need to be replaced.

multiply: increase the number of by the power of x

If you multiply two by three, you'll get six.

net-book value: the current value of an asset shown in the accounting

documents

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The car was purchased in 2011 for $30,000, now only one year later the net-book
value is $22,000, which shows a depreciation rate of $8,000 in year 1.

salvage value: the amount of money that an asset will be worth at the end of its
useful life
The company purchased a $16,000 forklift for use in its warehouse and believes it'll
be able to resell the forklift for a salvage value of $1,000 at the end of 8 years.

straight line depreciation: the method for reducing the value of a tangible asset by
equal amounts over its useful life
Not having much experience in accounting, he chose the straight line method of
depreciation as it appeared to be the easiest to understand.

sum-of-years-digits depreciation : the method for reducing the value of a tangible

asset by a variable percentage depending on how long the asset has been on the
books
A lot of people are put off of the sum-of-years-digits method of depreciation as it
can seem complicated, but it does have some advantages.

C. DISCUSSION
Why do you think depreciation and amortization are so important in accounting?
Are there any assets that you think should not be depreciated? Why?
Which types of assets are best depreciated using: a) The straight line method? b)
The sum-of-years-digits method? c) The annuity method?
Which types of assets are best depreciated using: a) The straight line method? b)
The sum-of-years-digits method? c) The annuity method?

D. PRACTICES
I. A manager has asked his accountant to explain depreciation. Read and
answer the questions:

Manager: So, could you just go over depreciation again?

Accountant: Sure, I’ve prepared a quick list of the different types like you asked.

Manager: Great

Accountant: Ok, let’s see. Well, you know that normal accounting treatment means
that a fixed asset has to be written off over its useful life. Basically we look at the
cost of the item, and take away its estimated scrap value. Then we use a depreciation
method to write it off.

Manager: yes, of course it’s five years for computers, I think.

97
Accountant: Right, well, as you say, there are different ways of doing this. Let’s see
straight line, declining balance, sum-of-the-years’-digits, unit of production, hours of
use. If you look at this list, you can see a description of each of these methods.

Manager: Oh yes, I see, that’s very useful.

What happens to fixed assets?

How do accountants do this?
What are the five methods of depreciation the accountant mentions?

S____________ l _________________
D ____________ b _____________
S _________ -of-the-y __________ - d _________
U __________ of p _________
H _____________ of u _____________

Now look at the accountant’s list of definitions. Can you match them to the
methods of depreciation she mentioned in exercise 1.

__________________: The asset is depreciated by a constant amount every

year. The depreciation expense for each year is calculated by subtracting the
salvage value from the acquisition cost, and the dividing the difference by the
useful life of the asset.
________________: The depreciation expense is calculated by
first subtracting the salvage value from the acquisition cost. The difference is
multiplied by a fractional amount, where the denominator and numerator are
based on the addition of the figures in the asset’s useful life.
________________: The depreciation is ‘accelerated’ by this method, so that the
expense is greater in the first years. The salvage value is ignored in the
calculation, but the asset will not be depreciated below this value.
_______________: The expected usage of the asset is taken into account in
determining the rate of the depreciation.
_____________: The expected output of the asset is taken into account in
determining the rate of depreciation.

III. Use the words from the box to complete the following conversation.

Depends * so* clarify * mean* basically * exactly

Kathy : Hi Javier. How’s it going?

Javier: It’s not easy, all this English. We didn’t do any of this on my course.

Kathy: Can I help?

Javier: Well, maybe you could _______1. a couple of things. Let’s see. Ah , here
we are. Provision for income taxes. What does that_________2?

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Kathy : OK. Provision means putting money aside so that we have something to pay
with later. So provision for income taxes is talking about the current year’s tax
expense which will have to be paid in the future.

Javier: Like provisional?

Kathy :Not _______ 3. Provisional just means temporary, you know, not final. Like
a provisional budget. It’s not the final version.

Javier: I see. And what about deferred income tax balances. What does
deferred mean?

Kathy :_________4 put off to another day. The income has been recognized in the
accounts, but the tax owing on that income will only be realized in the future.

Javier: OK. How does that affect associated companies?

Kathy :Well, it _________ 5. Associated companies and affiliates are a special case.
Deferred taxes are not normally recognized on undistributed earnings, but only if
the plan is to re-invest the profits.

Javier:_____________6 if we don’t invest the profits, we pay tax.

IV. Use the words from the box to fill in the gaps.

Abolish bracket breaks exempt exile increase property return

The government needs more money, so it is planning to ___________ taxes.

He earns a lot of money – he must be in the highest tax ________.
She lives there because she has to – she’s a tax ______.
They are planning to ___________ the tax on large company cars, and
replace it with a tax on all company cars.
She is a student, so she is a tax _______.
The government is planning to introduce new tax ________ for IT
companies.
Don’t buy a house this year - the ________ taxes are being abolished next
March.
A tax _________ is the same as a tax declaration – it’s a list of income and tax
deductible expenditure for the tax authority.

An accountant from a Swiss parent company, Uta Meier, telephones the

Internal Revenue Service ( IRS) in the U.S. to discuss the treatment of certain
costs. Read the conversation. What is the result of the discussion?

Uta: These costs clearly relate to the repair and maintenance of our machines.

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IRS: But in your financial statements, you argue that this expenditure was to
upgrade and you have capitalized it all. At first glance, it appears clear that…

Uta: Excuse me, but you know as well as I do that the accounting and tax
regulations allow for different definitions of what we can capitalize, and what we
must expense.

IRS: Yes, but it’s easy to work out the type of costs you have from the descriptions
in your accounts. And based on our interpretation of the laws, which you can of
course depreciate.

Uta: We’re going to take this further. I’m afraid I can’t agree with your comments.

IRS: Look, I’m sorry, but this conversation is going nowhere. I suggest you make a
submission and send it to our office. We can then consider your arguments in detail.

Uta: Fine. I’ll do it today. Thanks for your time.

IRS: You’re welcome. Goodbye.

Uta: Bye.

Find words from the conversation which mean the following:

To improve a machine or equipment _______________________

Written suggestion ______________________________
An opinion of what something means ________________
Rules _____________________________
To include as an asset _____________________
An explanation of what something means ____________________

VI. Circle the odd one out in each of the following.

1. Fixed assets could include

a) buildings b) plant and machinery

c) the firm’s delivery vans d) fuel for the vans

2. Depreciation due to physical deterioration of an asset may include

a) wear and tear b) theft

c) erosion d) rot

3. Machinery becomes obsolete due to

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a) new technology b) consumption

c) changes in production methods d) changes in fashion

4. Amortization is the provision for consumption of the following items

a) mortgages b) leases

c) patents d) copyright

5. A provision for depletion would be used for the following items

a) mines b) buildings

c) quarries d) oil wells

6. A machine could be disposed of by being

a) scrapped b) resold

c) revaluated d) traded in

VII. Match the following expressions with the correct definitions.

1. human capital a) money to carry on production and keep trading

2. risk capital b) money a company has raised from investors who

bought shares

3. share capital c) money invested in a project with a high chance of

failure

4. venture capital d) money a company borrows to start up a new business

5. working capital e) the perceived value of people and their skills

VIII. Complete the sentences below. Use the key words if necessary.

Fixed assets

A company's assets are usually divided into …………………like cash and stock or
inventory, which will be used or converted into cash in less than a year, and
………………………..such as buildings and equipment, which will continue to be
used by the business for many years.

But fixed assets …..………….- become unusable, or become

…………………….— out of date, and eventually have little or no value.

101
Consequently fixed assets are …………..…….: their value on a balance sheet is
reduced each year by a ………………..…on the profit and loss account. In other
words, part of the cost of the asset is deducted from the profits each year.

The accounting technique of ……………………makes it unnecessary to charge

the whole cost of a fixed asset against profits in the year it is purchased. Instead it
can be charged during all the years it is used. This is an example of the matching
principle.

Valuation

Assets such as buildings, machinery and vehicles are grouped together under fixed
assets. Land is usually not depreciated because it tends to ……………………., or
gain in value. British companies occasionally …………..………— calculate a new
value for — appreciating fixed assets like land and buildings in their balance sheets.
The revaluation is at either………………………— how much it would cost to buy
new ones, or at……………..………(NRV) — how much they could be sold for.
This is not allowed in the USA. Apart from this exception, ……………..………..is
only recorded in countries that use inflation accounting systems.

Companies in countries which use historical cost accounting — recording only the
original purchase price of assets - do not usually record an estimated
…………………..— the price at which something could be sold today. The
conservatism and objectivity principles support this; and where the company is a
going concern, the market value of fixed assets is not important.

Depreciation system

The most common system of depreciation for fixed assets is ……..………….,

which means charging equal annual amounts against profit during the lifetime of the
asset (e.g. deducting 10% of the cost of an asset's value from profits every year for 10
years).

Many continental European countries allow …………………..…: businesses can

deduct the whole cost of an asset in a short time. Accelerated depreciation
allowances are an ………………………to investment: a way to encourage it. For
example, if a company deducts the entire cost of an asset in a single year, it reduces
its profits, and therefore the amount of tax it has to pay. Consequently new assets,
including huge buildings, can be valued at zero on balance sheets. In Britain, this
would not be considered a true and fair view of the company's assets.

IX. British English or American English?

fixed assets
property, plant and equipment

Match the definitions with the words below.

102
1. To record something at a different price — . . . a. appreciate
2. Assets that will no longer be in the company in 12 months' b. fixed assets

time — . . . c. obsolete
3. To increase rather than decrease in value — . . .
d. current assets
4. Out of date, needing to be replaced by something newer — .
e. revalue
..
5. Assets that will remain in the company for several years — f. wear out

...
6. To become used and damaged — . .

Match the nouns with the verbs below to make word combination
Cost, fixed assets, market value, profits, value, purchase price

deduct ………………..
depreciate……………………
record ……………………
record…………………
reduce……………….
reduce……………………….

XI. Match the two parts of the sentences

1. All fixed assets can appreciate if there a. charges equal amounts against profits
is high inflation, . . . every year.
2. Accelerated depreciation allows b. which usually appreciates.

companies to . . . c. but historical cost accounting ignores

3. Fixed assets generally lose value, this.

except for land, . . . d. remove some extremely valuable

4. The straight-line method of assets from their balance sheets.

depreciation e. which encourages them to invest in

5. Accelerated depreciation reduces new factories, etc.

companies' tax bills, . . .

E. TRANSLATION
Translate the following text into English

103
 SƠ LƯỢC VỀ KHẤU HAO

Hãy cẩn trọng: các công ty luôn tìm mọi cách để có được những chỉ số cơ bản
đẹp. Bởi thế nên các nhà đầu tư cần đánh giá cẩn thận khi đọc những số liệu
trong báo cáo tài chính.

Thật là thiếu sót nếu chỉ nhìn vào một chỉ số EPS cao hay giá trị sổ sách thấp. Các
nhà đầu tư cần chú trọng đến các giả định và phương pháp kế toán ẩn sau những
con số này.

Trong bài viết, chúng ta sẽ xem xét những điểm cần chú ý khi phân tích khấu hao.
Khấu hao có thể chiếm một phần lớn chi phí trong báo cáo kết quả hoạt động kinh
doanh của công ty, và cũng có thể ảnh hưởng đến những cơ hội đầu tư trong ngắn
hạn. Mặc dù đã có những quy định về cách ghi chép khấu hao, nhưng vẫn còn rất
nhiều kẽ hở để đội ngũ lãnh đạo công ty tận dụng nhằm đánh lạc hướng nhà đầu tư.
Việc xem xét khấu hao một cách cẩn thận sẽ đem lại nhiều lợi ích.

Khấu hao là gì?

Khấu hao là quá trình công ty phân bổ hao phí tài sản trong suốt quá trình sử dụng
của nó. Mỗi khi công ty lập báo cáo tài chính, sẽ có mục chi phí khấu hao để ghi lại
phần hao phí của cơ sở vật chất, máy móc, thiết bị từ lúc công ty mua các tài sản này
đến năm tài chính hiện tại. Mục đích của việc kê khai khấu hao dưới dạng chi phí là
để trải đều giá mua ban đầu trong suốt thời gian hiệu dụng của tài sản. Đối với tài
sản vô hình – ví dụ như thương hiệu hay sở hữu trí tuệ - quá trình phân phối hao phí
qua thời gian được gọi là khấu hao tài sản vô hình (amortization). Với tài nguyên
thiên nhiên như nước khoáng, gỗ và dự trữ dầu, quá trình này được gọi là depletion.

Giả định

Những giả định quan trọng về chi phí khấu hao do đội ngũ giám đốc của công ty
quyết định. Họ luôn suy nghĩ kỹ càng về những vấn đề sau:

Phương pháp và tỉ lệ khấu hao

Tuổi đời của tài sản
Giá trị thanh lý của tài sản
Lựa chọn cách tính toán

Tùy thuộc mong muốn, các công ty có thể tùy ý lựa chọn phương pháp để tính chi
phí khấu hao. Để đơn giản hóa, chúng ta sẽ tóm tắt 2 phương pháp phổ biến nhất:

Phương pháp đường thẳng: Ước tính giá trị thanh lý của tài sản vào cuối tuổi đời
rồi lấy chi phí ban đầu trừ đi giá trị này. Đem kết quả chia cho số năm sử dụng ước
tính của tài sản. Chi phí khấu hao của công ty là như nhau qua các năm. Đây là công
thức của phương pháp đường thẳng:

104
Khẩu hao đường thẳng = (giá ban đầu của tài sản – giá trị thanh lý)/ tuổi thọ sử
dụng ước tính

Phương pháp khấu hao nhanh – phương pháp này liệt kê chi phí khấu hao nhanh
hơn so với phương pháp đường thẳng. Nhìn chung, mục đích là để giảm thiểu thu
nhập chịu thuế. Một phương pháp phổ biến là "phương pháp khấu hao gấp đôi số
dư giảm dần” (double declining balance), trong đó chủ yếu tăng gấp đôi tỷ lệ khấu
hao theo phương pháp đường thẳng:

Khấu hao giảm dần gấp đôi = 2 x tỷ lệ khấu hao đường thẳng.

Khấu hao giảm dần gấp đôi = 2 x (chi phí ban đầu của tài sản - giá trị thanh lý) /
tuổi thọ ước tính của tài sản

Ảnh hưởng của phương pháp tính

Là nhà đầu tư, bạn cần hiểu việc lựa chọn phương pháp khấu hao ảnh hưởng đến
báo cáo kết quả hoạt động kinh doanh và bảng cân đối kế toán trong ngắn hạn như
thế nào.

Xét ví dụ sau:

Công ty Tricky mua một hệ thống công nghệ thông tin mới trị giá 2 triệu USD.
Tricky ước tính hệ thống có giá trị thanh lý là 500.000 USD và sử dụng được 15
năm. Theo phương pháp khấu hao đường thẳng, chi phí khấu hao của hệ thống IT
trong năm đầu được tính như sau:

($2.000.000 - $500.000)/15 = $100.000

Theo phương pháp khấu hao gấp đôi số dư giảm dần, chi phí khấu hao của hệ thống
IT trong năm đầu là:

x tỷ lệ khấu hao đường thẳng =

2 x($2.000.000 - $500.000)/15 = $200.000

Như vậy, nếu Tricky sử dụng phương pháp khấu hao đường thẳng, chi phí khấu hao
tài sản trong báo cáo kết quả hoạt động kinh doanh sẽ giảm đi đáng kể trong năm đầu
tiên (100.000 USD chứ không đến 200.000 USD như trong khấu hao nhanh)

Điều này lại ảnh hưởng đến thu nhập. Nếu Tricky muốn giảm chi phí và tăng chỉ số
EPS, công ty sẽ chọn phương pháp đường thẳng để "mông má" các số liệu của mình.

Rất nhiều nhà đầu tư tin rằng giá trị sổ sách, hay chỉ số giá trị tài sản thuần (NAV)
là tiêu chuẩn đo giá trị chính xác nhất. Nhưng, hãy cẩn thận. Việc lựa chọn phương
pháp khấu hao cũng có thể ảnh hưởng đáng kể đến giá trị sổ sách: xác định giá trị

105
ròng của Tricky bằng cách lấy toàn bộ giá trị tài sản trừ đi mọi khoản nợ trong bảng
cân đối kế toán – bao gồm cả khấu hao. Kết quả, nhờ giá trị ròng của tài sản giảm
chậm, khấu hao đường thẳng làm giá trị sổ sách của Tricky lớn hơn phương
pháp khấu hao nhanh.

Ảnh hưởng của các giả định

Tricky đã xác định tuổi đời khá dài cho hệ thống công nghệ thông tin của mình - 15
năm. Công nghệ thông tin thường trở nên lạc hậu khá nhanh, do đó hầu hết các công
ty khấu hao hệ thống công nghệ thông tin trong vòng 5-8 năm.

Vấn đề còn nằm ở giá trị thanh lý Tricky lựa chọn. Thật là khó tin khi một hệ thống
đã sử dụng 5 năm tuổi vẫn còn giữ được ¼ giá trị gốc. Nhưng chúng ta có thể nhìn ra
lý do cho quyết định của Tricky: tuổi đời sử dụng tài sản càng lâu và giá trị thanh lý
càng lớn, thì chi phí khấu hao mỗi năm càng thấp. Chi phí khấu hao thấp tăng thu
nhập và tăng giá trị sổ sách. Giả định của Tricky, dù vẫn còn nhiều nghi vấn, sẽ giúp
những thông số cơ bản lôi cuốn hơn.

Kết luận

Khi xem xét kỹ hơn về khấu hao, nhà đầu tư có thể nhận thấy sự tăng trưởng thu
nhập trên chỉ số EPS cũng như sự tăng giá trị sổ sách có thể thuần túy chỉ là kết quả
của một số mánh khóe kế toán. Thu nhập và giá trị tài sản ròng tăng lên dựa vào cách
chọn phương pháp tính khấu hao không đồng nghĩa với việc hiệu suất làm việc được
cải thiện, và vì thế, không báo hiệu những nền tảng vững mạnh lâu dài

https://www.saga.vn/so-luoc-ve-khau-hao~31788

F. WRITING
Describe the depreciation method companies can use on their assets and the reasons
for choosing that method

106
 UNIT 9: MANAGEMENT ACCOUNTING

A. READING
Most businesses are aware of the value of highly skilled accountants, as their
knowledge can save the company money. However, a lot of companies forget that
good accountants can actually help in increasing revenue and decreasing overheads
as well.

Accountancy is much more than recording financial transactions in order to

calculate profit or show the tax liability of a company. Management accountants
actually help shape company policy and the direction that the company will take in
the future.

Whereas financial accounting is focused on providing reports for both internal users
like the board of management and external users such as the tax office, management
accounting focuses on providing information for internal users so that they can
choose the correct course of action in any situation and confirm that actions are taken
efficiently.

Unlike financial accounting, management accounting has no set of standard reports

instead management accountants compile any reports which are likely to assist the
company in making the right choice.

So how can managerial accounting help your company?

The primary function of managerial accounting is focused on increasing knowledge

inside a company and as a result reducing risks connected with decision making.
Accountants can draft reports on the cost of production, workforce expenditure, and
the cost of various projects and schemes, among other activities. Managers may then
utilise these reports to measure the difference, or "variance," between the expected
and actual results, or to compare performance to other benchmarks.

107
Because of the need for a variety of detailed information about specific areas within
a company, the reports produced by management accountants are often much more
in-depth than financial accounting reports, such as balance sheet ratios and net
income calculations. Managerial reports can also differ from financial reports in the
frequency at which they are produced with these reports being prepared on a
monthly, weekly or even daily basis. One of the characteristics of most managerial
accounting reports is the summary format that they are presented in. This format
makes it easier for managers to quickly identify potential problem areas and then
study those areas to aid in determining the correct way to resolve these problems.

The majority of managerial accounting functions produce information which is used

to make decisions about the future and to evaluate the effectiveness of past decisions.
Monitoring financial results and measuring the outcome is called "controlling." The
person in charge of a company's accounting department is called the "controller."
This person plays a key role in planning and controlling processes throughout the
company.

Management plans are formally shown as budgets, and the term "budgeting"
usually talks about management planning. The controller supervises the creation of
budgets. Budgets are often prepared for individual teams and departments within a
company as well as for the company as one entity.

After the budgets have been established, managerial accountants collect information
generated by the organization that indicates the actual company performance in
contrast to the budgeted figures.

The managerial accounting findings are presented using performance reports

tailored for the individual needs of the executives or departments. The performance
reports compare budgets with actual results for a particular timeperiod, which
allows managers to identify problem areas.

Management accountants can also create special reports which are used to help
make decisions about proposed projects or possible takeovers. Reports are created
to analyse cost and benefit relationships connected to different variables. For
example, if a company's competitor lowers its prices, management may ask for a
report comparing possible responses, such as lowering its prices, or increasing
advertising. These reports usually include the collection of outside data as well
asforecasting.

Managerial accounting staff are now often expected to help in creating strategies to
increase the profitability of a company and to cooperate in cross-functional teams
with managers from operational departments throughout the organization. As a
result of these additional duties, management accountants are now not only
accountants but key members of finance teams.

B. VOCABULARY

108
Please find the equivalence of the 15 vocabulary terms in Vietnamese

Additional: in addition to, extra

His promotion will mean additional work, but also additional pay.

Assist: help, or make easier

Having correct and timely financial information assists in making operational

decisions.
Benchmarks: a standard by which something can be measured or assessed

The recently released 2012 earnings benchmark figures show that CPAs are
earning more than in 2011.
Budgeting: the process of creating set financial targets which should be met

A lot of companies fell short of the budgeting expectations because of the

unexpected impact of the financial crisis.
Draft: prepare a written version of

The lawyer drafted the contract and sent it to his client for approval.

Entity: a person, partnership, organization, or business that has a legal and

separately identifiable existence
A limited company is a separate legal entity from its members.

Forecast: estimate or calculate in advance

By studying the previous year's accounts and considering any changes in the
market, you can forecast the financial state of the company 12 months in advance.
in-depth: carefully worked out, detailed or thorough

Management accountants need an in-depth knowledge of finance and management

as well as accountancy to be successful.
Indicate: show, be a sign of

The financial report indicates that the company has exceeded its expectations.

management accounting: the process of preparing management reports and

accounts that provide accurate financial and statistical information
The management accounting team finished their analysis of production costs and
presented their findings to the board of managers.
109
Overheads: the ongoing administrative expenses of a business which cannot be
matched to any specific business activity
In an attempt to try and reduce overheads the company switched water suppliers
and cancelled the 'free lunch' programme for staff.
Period: an interval of time characterized by the occurrence of a certain
condition, or event
The accounting period for tax reporting is 12 months from the 1st of January.

Risk: the possibility of suffering harm or loss

It is important to minimize the risk to a company by having all the relevant

information before making a decision.
Takeover: the transfer of control of a firm from one group of shareholders to
another group of shareholders
AOL's takeover of Timewarner was one of the largest acquisitions in business
history.
Variance: the difference between two figures

The company expected costs to be 100,000 but the actual costs were 120,000 so the
director asked about the reason for the variance.

C. DISCUSSION
How can management accountants help a business?

Do you agree that management accounting is more valuable to a company than

financial accounting? Why / why not?
'Accounting records the past while management accounting predicts the future' Do
you agree? Why / why not?

E. PRACTICES
I. Make a list of what the CFO needs to supply. How do you think he should
present this information? What kind of reports of documents would be most
effective? Find words in the dialogue previously to complete the table.

VERB NOUN ADJECTIVE

to allocate ________________ x

110
 to complete completion ___________________
to cost _________________ costly
to employ _________________ employable
to inform __________________ informative
to produce ___________________ productive
to profit profit __________________
to sell _________________ X

Now complete the correct form of words from the above table to complete the
sentences

We have far too much work – we need to _____________ an assistant to

help us.
Everything we do depends on having accurate _____________________ .
The company ____________electrical goods like photocopiers and scanners.
We can’t have new laptops for everyone because it’s simply too
___________ .
The pre-tax _____________was over $15.
We’ve been ________________the conference room on the ground floor.
Let’s meet down there at 4 p.m.
They hope to _______________the report by Friday.
We always have the highest __________________at Idulf Fitri.

II. Look at the statement of Cash Flows on the next page. Are the following
statements true  or false ?

Amortization of goodwill and other intangible rose in 2008. 

More dividends were paid in 2009 than in 2008. 
Net earnings increased from 2007 to 2009. 
Depreciation and amortization of property, plant and 
equipment went up in 2008.
Inventories remained stable during the period 2007-2009 
There were no additions to property, plant and equipment in 
2009
Deferred income taxes fell in 2009 
Cash from operating activities was more than cash for 
investing activities in 2008.

The regulatory authorities of various countries have made it mandatory for

certain enterprises (e.g., publicly listed companies) to produce and present a
report on the movement of cash in any given year. This statement is called the
Source and Application of Funds, the statement of Cash Flows, or the Cash
Flow

111
Statement of Cash Flows 2009 2008 2007
For the years ended December 31(In
millions)
Cash flows-operating activities
Net earnings 9.734 8.919 8.910
Adjustments to reconcile net earnings to
cash provided from operating activities
Cumulative effect of accounting 0 212 0
changes 3.574 3.475 3.118
Depreciation and amortization of
property, plant 1.837 3.475 1.887
and equipment 0 0 0
Amortization of goodwill and 965 756 545
other intangibles 1.274 1.177 1.571
Earnings (before accounting (617) (847) 189
changes )retained 2.647 3.197 2.948
Deferred income taxes 4.490 5.612 6.765
Decrease (increase)in current 1.299 1.578
receivables 1.964 689 32
Decrease (increase) in inventories
Decrease (increase) in accounts 30.834 2.6476 2.7543
payable
Decrease (increase) in insurance
liabilities and
Reserves
provision for losses o financing
receivables
all other operating activities
Cash from operating activities
Cash flows – investing activities

Additions to property, plant and (16.222) (12.388) (13.094)

equipment 5.609 4.512 5.436
Dispositions of property , plant and 10.755 8.287 7.339
equipment 8.618 1.276 6.376
Net increase in financing receivables 1.388 4.858 4.286
Payments for principle businesses (31.374) (22.297) (25.659)
purchased
All other investing activities
Cash from used for investing
activities
Cash flows – financing activities

Net increase (decrease) in borrowings 8.594 (3.590) 1.844

112
(maturities of 90 days or more)
Newly issued debt (maturities longer 18.866 36.644 30.866
than 90 days) (40.056) (32.918) (30.667)
Repayments and other reductions 1.732 1.286 (1.466)
(maturities longer than 90 days) (3.655) (3.455) (3.298)
Net dispositions (purchases) 266 655 (7)
Dividends paid (4.253) (1.376) (2.728)
All other financing activities
Cash from (used for) financing
activities
Increase (decrease) in cash and (4.793) 2.803 (844)

equivalents during year 18.278 15.475 16.319

Cash and equivalents at beginning of 13.486 18.278 15.475
year
Cash and equivalents at end of year
Supplemental disclosure of cash flows (9.475) (8.838) (8838)
information
Cash paid during the year for interest (12.880 (1.678) (1678)
Cash recovered (paid) during the year
for income taxes

IV. Match these words from the Statement of Cash Flows with their meanings.

1 Dividend a money that is owed

2 Cash b purchase price minus real value of assets
3 Plant c reduction in value due to wear and tear
4 Amortization d money paid out to shareholder
5 Goodwill e writing an intangible asset off over a
number of years
6 cumulative f increasing by successive additions
7 depreciation g coins, bank notes, or something that can be
easily exchanged for these
8 Debt h Building and equipment for manufacturing

V. Reading

The future of accounting

The traditional view of accountants as merely ‘bean counters’ is slowly becoming a

thing of past. For countries, accountants have been employed to report on the
numbers. They have sat there in their little corner, surrounded by stacks of paper and
computer printouts, and have told us whether or not we have made a profit. But

113
more and more, accountants are finding that management doesn’t need them to report
on the numbers.
Their enterprise and knowledge of the business will be called upon to prepare
strategies. They will become consultants and advisers. And their skills will need to
change accordingly. They will be involved in international meetings, in giving
presentations, running international teams, writing reports, and making decision With
today’s technology, management already has access to software programs which do
this work for them.
So what will the future accountant do? According to Mr. Hamilton-Symthe, the
Managing Director of KHZ Enterprises, the large international manufacturing
company, accountants will be employed “to help companies change the numbers.
This is going to require a significant change in the general public’s opinion of
accountants, who in turn will need to develop skills not traditionally associated with
the job. The image of the guy in the corner with the stacks of paper will change to
one of a high flyer, someone who is critical to the success of the organization

Answer the following questions

What do you think the future of accounting looks like?

What skills will you need to be successful in this profession?
How will you prepare yourself for the future?

E. TRANSLATION
Translate the following text into English

KẾ TOÁN QUẢN TRỊ LÀ GÌ?

Kế toán quản trị là một nhánh mới của ngành kế toán được ra đời trong thời gian
hơn 15 năm trở lại đây và đang trở thành xu thế mới của kế toán hiện đại.

Một cách dễ hiểu nhất thì Kế toán quản trị là lĩnh vực chuyên môn của kế toán
nhằm nắm bắt các vấn đề thực trạng, đặc biệt là thực trạng tài chính của doanh
nghiệp. Qua đó giúp nhà quản lý doanh nghiệp ra quyết định điều hành một cách tối
ưu nhất. Thông tin của kế toán quản trị đặc biệt quan trọng trong vận hành doanh
nghiệp, đồng thời phục vụ kiểm soát và đánh giá doanh nghiệp đó.

Có hai loại thông tin mà kế toán quản trị sẽ cung cấp bao gồm thông tin tài chính và
thông tin phi tài chính. Tất cả các thông tin này được gọi chung lại là thông tin quản
lý. Thông tin mà kế toán quản trị cung cấp không phải là thông tin tài chính đơn
thuần, trước khi cung cấp thông tin thì kế toán quản trị cần biết rõ mục đích của
những thông tin đó.

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Kế toán quản trị có vai trò thế nào trong hoạt động của doanh nghiệp?

Dưới đây là tổng hợp 7 vai trò của Kế toán quản trị trong doanh nghiệp hiện đại:

Kế toán quản lý:Kế toán quản trị thiết kế và xây dựng khung công việc
(frame-work) cho việc quản trị chi phí và tài chính chung của công ty cũng
như chuẩn bị và xây dựng các báo cáo cho việc ra quyết định tài chính.
Lập kế hoạch ngắn và dài hạn: Kế toán quản trị đóng vai trò quan trọng
trong việc dự báo các sự kiện kinh tế và kinh doanh trong tương lai, tức là
các kế hoạch dài hạn, kế toán quản trị chiến lược, xây dựng chiến lược phát
triển chung của công ty.
Xây dựng và phát triển hệ thống thông tin (MIS): Kế toán quản trị xây
dựng các báo cáo tài chính trong ngắn và dài hạn, các báo cáo này sẽ được
chuyển tiếp cho các cấp quản lý ở các cấp độ khác nhau giúp họ thông tin
cho việc ra quyết định kinh doanh đúng thời điểm và kịp thời.
Duy trì cấu trúc vốn tối ưu: Kế toán quản trị đóng vai trò quan trọng trong
việc duy trì cấu trúc vối tối ưu cho doanh nghiệp. Kế toán quản trị là người trợ
giúp lãnh đạo doanh nghiệp trong việc quyết định tỷ lệ pha trộn thích hợp
giữa Nợ và Vốn cổ phần, đồng thời tư vấn các phương án huy động vốn với
chi phí tối ưu (Sử dụng nợ ngân hàng hoặc phát hành cổ phiếu, trái phiếu
doanh nghiệp…vv).
Tham gia vào quy trình quản lý: Kế toán quản trị đóng vai trò then chốt
trong hoạt động của mọi tổ chức. Người làm kế toán quản trị thực hiện chức
năng của nhân viên và cũng có quyền hạn đối với kế toán, nhân viên khác
trong văn phòng. Kế toán quản trị cũng là người tư vấn giúp lãnh đạo doanh
nghiệp trong các nhu cầu rà soát, kiểm tra thông tin. Kế toán quản trị giúp
lãnh đạo tổng hợp thông tin từ các nguồn khác nhau và báo cáo một cách rõ
ràng với ban quản lý và đôi khi với các bên bên ngoài nếu được yêu cầu.
Kiểm soát: Kế toán quản trị quản lý và phân tích các tài khoản, chuẩn bị các
báo cáo, ví dụ như chi phí chuẩn, ngân sách, phân tích dòng tiền, quản lý quỹ,
quản lý thanh khoản, đánh giá hoạt động, kiểm soát chi phí..
Hỗ trợ ban giám đốc ra quyết định: Kế toán quản trị cung cấp thông tin
cần thiết cho ban giám đốc trong việc đưa ra quyết định ngắn hạn, ví dụ như
kết hợp sản phẩm tối ưu, mua bán, cho thuê hoặc mua, định giá sản phẩm,
ngưng sản phẩm … và các quyết định dài hạn, ví dụ như lập ngân sách vốn,
tài trợ dự án …

Công việc của một nhà Kế toán quản trị.

Các chuyên viên kế toán quản trị làm việc tại các cơ quan nhà nước, các doanh
nghiệp tư nhân, các tập đoàn toàn cầu hoặc các cơ quan chính phủ. Họ có thể được
gọi với nhiều tên gọi khác nhau như kế toán viên, kế toán chi phí…nhưng tất cả đều
thực hiện chức năng tương tự. Thật vậy, chuẩn bị dữ liệu để sử dụng trong công ty là
một trong những tính năng phân biệt công việc của một kế toán quản trị với các loại
hình công việc kế toán khác. Bên cạnh đó, nhà kế toán quản trị sẽ tiến hành theo dõi
và kiểm tra ngân sách tài chính nội bộ để giúp ngân sách của công ty hoạt

115
động trong tầm kiểm soát với chi phí vốn tối ưu. Cùng các nhà quản lý khác của công
ty, kế toán quản trị giúp công ty lựa chọn và quản lý các hoạt động đầu tư. Kế toán
quản trị là nhà quản lý và kiểm soát rủi ro, lên kế hoạch dự toán ngân sách, xây dựng
chiến lược và hỗ trợ ban giám đốc trong việc ra quyết định tài chính. Có thể gói gọn
công việc của người làm kế toán quản trị là xử lý cung cấp thông tin tài chính và hỗ
trợ lãnh đạo doanh nghiệp trong việc ra quyết định tài chính quan trọng trong công
ty.

Là một kế toán quản trị, bạn có thể giám sát các nhân viên kế toán cấp thấp hơn
mình, những người sẽ giúp bạn quản lý các công việc kế toán cơ bản của công ty,
chẳng hạn như theo dõi và cập nhật số liệu doanh thu và chi phí định kỳ, theo dõi nợ
thuế và sử dụng các dữ liệu này để chuẩn bị các báo cáo tài chính như báo cáo kết
quả kinh doanh, báo cáo lưu chuyển tiền tệ và bảng cân đối kế toán. Tại các công ty
nhỏ hơn, bạn có thể tự thực hiện các nhiệm vụ này mà không cần có nhân viên cấp
dưới. Kế toán quản trị sẽ phân tích các dữ liệu cơ bản này và đưa ra các chỉ báo, dự
báo, ngân sách, phép đo và kế hoạch thực hiện sau đó sẽ trình bày các số liệu này với
ban quản lý cấp cao hơn để hỗ trợ cho việc ra các quyết định tài chính tại doanh
nghiệp.

Một kế toán quản trị cũng có thể xác định xu hướng và cơ hội để cải tiến, phân tích
và quản trị rủi ro, thu xếp việc tài trợ vốn và xem xét việc tài trợ vốn cho các hoạt
động cũng như giám sát tính hiệu quả về mặt tài chính cho các dự án hoạt động của
công ty. Họ cũng có thể tạo ra và duy trì một hệ thống tài chính của công ty cũng
như giám sát các nhân viên lập trình IT và bộ vi xử lý dữ liệu để phân tích và xử lý
hệ thống tài chính cho doanh nghiệp. Hơn nữa, kế toán quản trị có thể là một lĩnh
vực chuyên môn, chẳn hạn như thuế hoặc lập ngân sách.

Kỹ năng cần thiết để trở thành một nhà kế toán quản trị

Các chuyên gia tài chính đều cho rằng nếu bạn có năng khiếu trong việc làm việc
với các con số toán học thì bạn sẽ có nền tảng tư chất thuận lợi để làm công việc
của một nhà kế toán quản trị. Tuy nhiên để vươn tới những nấc thang thành đạt
trong nghề nghiệp kế toán quản trị, bạn cần có những nền tảng vững chắc về kinh
doanh, quy trình sản xuất cũng như các kiến thức về khoa học quản trị.

Theo ông William F.Knes, Phó giám đốc tài chính và quản trị công ty Angus – Palm,
người làm kế toán quản trị cần nền tảng vững chắc các hiểu biết chuyên môn về kế
toán cơ bản, các nguyên tắc kế toán được chấp nhận rộng rãi (GAAP) và các hiểu biết
cơ bản về thuế. Kế toán quản trị giúp mở rộng các kỹ năng này bao gồm kiến thức về
kế toán chi phí và xây dựng các công cụ tài chính hữu ích, chẳng hạn như công cụ
dòng tiền chiết khấu. Khi kế toán quản trị hoạt động trong một doanh nghiệp, người
làm công tác kế toán quản trị cũng cần một nền tảng vững chắc về kinh tế và các kỹ
năng mềm như kỹ năng giao tiếp và thuyết trình, kỹ năng viết lách, thuyết phục và kỹ
năng giao tiếp.

Còn theo ông Ben Mulling, Giám đốc tài chính công ty TENTE Casters, Inc “ Mục
đích căn bản của kế toán quản trị là giúp cho người sử dụng và công ty quyết định
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tốt nhất có thể với những thông tin có sẵn, điều nay bao gồm cả việc ra quyết định
cho các hoạt động như Đầu tư vốn (Capital Investment), Cơ cấu hoạt động
(Operational Stucturing) và Quản trị rủi ro (Risk Assessments).

Cuối cùng, bạn cần có những kỹ năng lãnh đạo và kỹ năng quản lý. Theo ông Lon
Searle, Giám đốc Tài chính công ty YESCO Franchising LLC (Hoa Kỳ), người làm
kế toán quản trị cần được đào tạo và có kiến thức về quản trị trong cả hai lĩnh vực là
quản trị nhân sự và quản lý tài chính. Bên cạnh đó là các kỹ năng mềm như giao tiếp,
thuyết trình, sự am hiểu của bạn về công nghệ thông tin cũng như các phương tiện
truyền thông xã hội, marketing, bán hàng cũng là các kiến thức không thể thiếu đối
với người làm kế toán quản trị.

Nền tảng học vấn cho người hành nghề Kế toán quản trị.

Các chuyên gia tài chính đều cho rằng không có một quy định rõ ràng cho việc làm
thế nào để trở thành nhà kế toán quản trị, tuy nhiên đều thống nhất rằng bằng cấp
đại học về Kế toán – Tài chính sẽ cung cấp cho bạn những hiểu biết căn bản và tư
duy phản biện (critical thinking), là sự khởi đầu quan trọng và tốt nhất cho bạn trên
con đường trở thành nhà kế toán quản trị chuyên nghiệp.

Khi đã lựa chọn con đường trở thành nhà kế toán quản trị, bạn nên dành thời gian
đầu tư kiến thức để nâng tầm sự nghiệp. Một trong những công việc quan trọng bạn
cần làm để nâng cao thu nhập và mở rộng cơ hội nghề nghiệp là sở hữu chứng chỉ
hành nghề kế toán quản trị. Một trong những chứng chỉ nghề nghiệp danh tiếng và
được biết đến rộng rãi trên toàn cầu là chứng chỉ hành nghề kế toán quản trị CMA
(Certified Management Accountant) được thiết kế và cấp bởi hiệp hội Kế toán quản
trị Hoa Kỳ (IMA) (Institute of Management Accountants). IMA là tổ chức nghề
nghiệp danh tiếng toàn cầu được thành lập năm 1919 với hơn 85.000 hội viên và
được công nhận trên 140 quốc gia.

Chứng chỉ hành nghề kế toán quản trị CMA được thiết kế với nội dung chuyên
sâu, tập trung vào các kiến thức và kỹ năng thiết yếu trong công tác kế toán quản trị
và quản trị tài chính doanh nghiệp. Sau khi hoàn thành hai học phần, chứng chỉ
CMA sẽ giúp bạn có nền tảng kiến thức chuyên sâu trong lĩnh vực kế toán quản trị
và là sự chuẩn bị tốt nhất giúp bạn trở thành Giám đốc tài chính hoặc chuyên gia tư
vấn tài chính doanh nghiệp.

Lộ trình nghề nghiệp của người làm kế toán quản trị.

Các chuyên viên kế toán quản trị hoặc các giám đốc tài chính thường bắt đầu sự
nghiệp của mình với cấp độ là nhân viên kế toán hoặc chuyên viên phân tích tài
chính để hiểu các nguyên tắc căn bản của kế toán và cách thức hoạt động của doanh
nghiệp. Từ vai trò này, họ có thể phát triển lên các cấp độ cao hơn để trở thành
chuyên viên kế toán cao cấp (Senior Accountants) hoặc chuyên viên tài chính cấp
cao, sau đó là trưởng phòng kế toán hoặc giám đốc tài chính. Tuy nhiên nấc thang

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sự nghiệp có thể đi theo các hướng khác nhau tùy thuộc vào nấc thang cá nhân của
mỗi người.

Kế toán quản trị đóng vai trò quan trọng trong việc ra các quyết định tài chính công
ty và đây là cơ hội giúp các chuyên viên kế toán quản trị nâng tầm sự nghiệp cũng
như tạo dựng sự ảnh hưởng của mình trong công ty. Theo các chuyên gia tài chính,
cách tốt nhất để bạn nâng tầm sự nghiệp là việc bạn tự nguyện tham gia trong các dự
án khác nhau của công ty với vai trò đưa ra các quyết định tài chính, điều đó giúp
nâng cao vai trò của bạn trong tổ chức cũng như giúp bạn tích lũy những kinh nghiệm
cần thiết để tạo dựng nền tảng về kế toán quản trị và quản trị tài chính dự án. Bạn
cũng nên tham gia vào cộng đồng những người hành nghề kế toán quản trị tại địa
phương hoặc toàn cầu. Hiệp hội Kế toán quản trị Hoa Kỳ (IMA) cũng cung cấp cho
bạn cơ hội đó với mạng lưới hơn 85.000 hội viên tại hơn 140 quốc gia sẽ là một mạng
lưới nghề nghiệp giúp bạn học hỏi, nâng cao kỹ năng và hỗ trợ quyết định.

Kết luận
Kế toán quản trị là một công việc thú vị của Tài chính – Kế toán và nếu như bạn là
một người có thể giải quyết các vấn đề, suy nghĩ sáng tạo và có khả năng thuyết
phục người khác thì bạn sẽ có một sự nghiệp hứa hẹn trong nghề kế toán quản trị.

F. WRITING
With the rise of artificial intelligence, a wide variety of professions are be at risk of
becoming obsolete. So just what is the futureofaccounting?

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 UNIT 10: COST ACCOUNTING

A. READING
Management accounting is based heavily on cost accounting, but unless you have
worked in this area you are unlikely to know exactly what it is. So, what is cost
accounting?

At its simplest cost accounting is a method of evaluating theoverallcosts, both actual

and notional, which are attributable to conducting business. This could be a per unit
cost on goods produced, or a per hour cost for services provided. Generally based on
standard accounting practices, it is one of the tools that managers use to determine
what type of and how much expense is involved in maintaining the current business
model.

Unlike financial accounting, cost accounting can also be utilized to project changes
to these costs in the event of specific changes being implemented, and analyze the
effects of these changes on the company and the bottom-line.

Cost accounting helps to provide up-to-date data when measuring how intelligently
company resources are being used. By identifying production costs and then defining
the cost of production for successive business cycles, it is possible to note any
underlying trends that indicate a rise in production costs without any appreciable
changes or increase in production of goods and services. This approach makes it
possible to identify the reason for the change, and take steps to contain the situation
and limit costs incurred before profits are impacted to a greater degree.

But it is not just production which benefits from the results of cost accounting. By
using another cost accounting formula product development and marketing strategies
can also be informed by the use of cost accounting. In terms of product
development, it is possible to ascertain if a new product can be produced at a
reasonable price, considering the cost of raw materials and the labor and equipment
necessary to produce a finished product and as such establish a breakeven point. At
the same time, marketing protocols can make use of this type of accounting to
project if the product will sell enough units to make production a viable option.

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When a particular company has several options for development, cost accounting
can show which option would be the most profitable by comparing the expected
incomes from each option against the production costs oropportunity costs.

If a company is planning on expanding into a new market, cost accounting tools can
analyze the relative historic profitability of each market in order to find the best
option.

Cost accounting is helpful in making a number of business decisions. By weighing

the actual costs versus the anticipated benefit, it can help a company to avoid
launching a product with no real market, prevent the purchase of unnecessary goods
and services, or alter the current operational model in a manner that will decrease
efficiency. It can also be employed in the preparation of realisticbudgets. Whether
utilized to evaluate the status of a department within the company or as a tool to
project the feasibility of opening new locations or closing older ones, cost
accounting can provide important data that may impact the final decision and result
incost reduction.

There are many methods of cost accounting, most of which use thematching
principle where a particular cost is assigned or matched to the income it will
generate. Although there are other methods used to generate different kinds of
information.

One of the most important differences between cost and financial accounting lays in
the way that costs are classified. Whereas, financial accounting classifies based on
the transaction, cost accounting can classify in many different ways which gives the
possibility of analyzing the effect of the cost on each step of the process

B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

anticipate to imagine or expect that something will happen

Shareholders are anticipating a record dividend payment this year.

appreciable large or noticeable enough to have a significant effect

The crisis has had an appreciable effect on the financial market.

attributable to caused by or connected to

The company's success is attributable to the new CEO's leadership.

bottom-line the final line in the accounts, the net profit or loss made by a company
The CFO is working on minimizing the effects of the scandal on the bottom-line.

breakeven point the figure at which neither profit or loss is made

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By calculating the cost of production, we found the breakeven point of $5.35 per
item.

budget a plan that shows how much money you have, will have and what it will be
spent on
Corporate planners are preparing the budget for the next financial year.

classify to divide things into groups according to their type

Costs are classified into two groups, direct and indirect.

cost accounting the process in which all costs are examined

Most large companies use cost accounting to help save money and maximize
efficiency.

cost reduction the process of minimizing any expenses due from direct business
activity
In times of hardship, cost reduction is essential to a company's success.

costs incurred any expenses due as a direct result of business activity

By looking at costs incurred on a particular product, we can see where money can
be saved.

feasibility the possibility that can be made, done or achieved or is reasonable

The management accountant is looking into the feasibility of outsourcing
bookkeeping.

implement to put into effect

The new legislation will be implemented next year.

matching principle the idea that expenses should be allocated to a revenue stream
where possible
The matching principle should be followed in order to reach accurate net income
figures.

notional existing as an idea or as an approximate amount

I'm sorry but I cannot give you an exact figure, but the notional amount is 560,000.

opportunity costs the imagined loss made on not following a certain course of
action instead
We cannot afford to expand into both markets so please find out the opportunity
cost of expanding into Iran instead of Iraq.

overall in general rather than in particular

We need to study the overall costs and locate an area in which savings can be
made.

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project to calculate an amount or figure expected in the future based on information
in the present
The financial team projected net earnings of over $750,000, if it happens it will be a
record for the company

relative as judged or measured in comparison with something else

Taking the two ideas into consideration, the relative merits of the first are clear.

successive happening one after another

The company has made successive losses in the past five years.

underlying real but not immediately visible

Investments are made by evaluating the underlying value.

C. DISCUSSION
What particular skills do you think different kinds of accountants need?

Do you think you posses these skills? What are your assets and liabilities?

If you have yet to choose a career, do you think it could be accountancy?

D. PRACTICES
A. Direct and indirect costs

Cost accounting involves calculating the costs of different products or services, so

that company managers can know what price to charge for particular products and
services and which are the most profitable. Direct costs - those that can be directly
related to the production of particular units of a product - are quite easy to calculate.
Examples include manufacturing materials and manufacturing wages. But there are
also indirect costs or overheads - costs and expenses that cannot be identified with
particular manufacturing processes or units of production. Examples include rent or
property taxes for the company’s offices and factories, electricity for lighting and
heating, the maintenance department, the factory canteen or restaurant, managers’
salaries, and so on.

Costs such as these are often grouped together on the profit and loss account or
income statement as Selling, General and Administrative Expenses.

B. Fixed and variable costs

Companies also differentiate between fixed costs and variable costs. Fixed costs are
those that do not change in the short term, even if the production level changes, such
as rent and interest payments. Variable costs are those that change in

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 proportion to the volume of production, such as components and raw materials, and
overtime payments.

Manufacturing companies have to find a way of allocating fixed and variable costs
to the various products they make: that is, they divide up the costs and charge them
to the different products. Absorption costing attempts to charge all direct costs and
all production costs, and sometimes all indirect costs such as administrative
expenses, to each of the company’s products or services. Activity-based costing
calculates all the costs connected with a particular activity (e.g. product design,
manufacturing, distribution, customer service), even if they are carried out by
different departments in the company. Most companies have departments or
functions that do not generate any profit but only incur costs (e.g. accounting and
legal departments). For accounting purposes, companies often make these
departments into cost centres, and allocate or charge all the costs related to them
separately

C. Breakeven analysis

When deciding whether it would be profitable to produce a product, or offer a

service, companies do a breakeven analysis. This compares expected sales of the new
product with expected costs - both direct and indirect - at various production levels.
The breakeven point is the sales volume - the number of units sold - at which the
company covers its costs - pays all its expenses. To make a profit, it is necessary to
sell more than this.

Although cost accounting allows companies to calculate production costs, pricing

decisions also depend on:

the level of demand

he prices of competitors’ products
the company’s financial situation
the company’s objectives - the goals or aims it wants to accomplish
the company’s marketing policies - whether it is interested in maximizing
sales or maximizing profit.

Match the words in the box with the definitions below. Look at texts A, B and
C to help you

breakeven point cost centre fixed costs overheads variable costs profitable

expenses that are not clearly related to production or manufacturing

a unit of activity in an organization for which costs are calculated separately

costs that depend on the amount produced

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adjective meaning providing income for a company

costs that do not change according to the production volume

the sales volume at which a company doesn’t make a loss, but doesn’t make a
profit

Sort the following into direct, indirect, fixed and variable costs. Look at texts
A and В to help you.

Cost Direct Indirect Fixed Variable

Advertising expenses
Bad debts + +
Components + +
Electricity to run machines
Electricity for heating
Equipment repairs
Factory canteen
Overtime pay
Raw materials
Property tax
Rent

IV. Which of the following statements describes:

absorption costing?

activity-based costing?

As well as direct manufacturing costs - materials and labour - we allocate part of our
fixed and variable manufacturing overheads to the cost of every product.

We identify all the different functions within the company, and assign costs to
products and services according to how much these functions are involved in the
process of providing the products and services.

V. Match each sentence or word in the left-hand column with the best meaning
in the right-hand column.

1. creditor a) this is the name of the difference between the credit and
2. loss debit side of an account;
3. purchases b) companies make this when they sell their goods for less
4. stock than it costs them to make them;

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5. withdrawal c) cash or goods which the owner takes from the company
6. debtors for his own private use;
7. discount d) the official books for keeping accounts;
8. balance e) this company has supplied goods but has not received any
9. carriage money for them;
10.drawings f) the extra amount which is paid for a company above the
11.goodwill value of its assets;
12.acquisition g) an amount of money which is taken out of an account;
h) a reduction in the price which is offered to customers; i)
the purchase of another company;
j) goods which the company has available to sell;
k) customers who have received goods but not paid for them
yet;
l) goods which are bought by the company.

VI. Complete the following words (see example):

This is the name for building, machinery, money in the bank and money owed by
customers. ASSETS

The loss of value of the things in number D_ P_ _ _ _ _ _ _ _ N

Money which is borrowed L_ _ _

The extra money a company or person pays for borrowing money I_ _ _ _ _ST

The total sum of money which is supplied by the owners of a company to set up

C___T__

These are bought by people wishing to invest in the company S_ _ _ _ S

An official examination of the accounts A_ _ _ T

A financial plan for the future B_ _ _ _ _T

A statement of the financial position of the company

B_____ESHEET

Companies make this when they sell their goods for more than it costs them to
make them P_ _ _ _ T

This is drawn up to check that the two sides of the accounts are the same

T___LB______

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12. The official books for keeping accounts L_D_ _ _ S

VII. Match the remarks on the left with the responses on the right.

a. Ha! Now you’re going to ask me to tell you

how you can pay less tax.

b. No, managerial accountants do, but I work in

cost accounting. We have to work out the real
cost of each item the company makes, which
You’re an accountant? Does means finding a way to allocate all the overheads
that mean you spend your time to different products.
writing down credits and debits,
and adding up columns of figures c. No, not only. Managers always need the help of
all day? Can’t be very exciting. accountants. They need financial statements, and
budgets, and cash-flow projections, and so on, to
So what do accountants do? measure the success of what they’ve done, and to make
decisions about allocating resources for
You mean the shareholders? future projects.

So you prepare reports for
managers?
And the cost of the accounts
department!
You mean what they do in the
front of shops?
Ah, now that’s interesting…
Not at all. As a matter of fact,
I’m a tax inspector….
d. Of course. But like I said, we’re necessary.
And useful. Haven’t you heard of “window
dressing?”
Sure, but it’s also another name for what some
people call “creative accounting” – making a
company’s financial situation look as good as
possible in the balance sheet, and so on. It’s not
very legal, but happens. The accountants in my
firm also have lots of wonderful ways of reducing
our tax bill.
That’s bookkeeping. Not quite the same thing.

Well, accountants do record cash flows, and the

value of assets and liabilities, and they calculate
profits and losses, and so on. But it’s not just
writing down numbers. We’re really in the
business of supply people with information.

VIII. Match up these accounting principles with the definitions below:

The separate entity or accounting entity assumption

The continuity or going-concern assumption

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The unit-of-measure assumption

The time-period or accounting period assumption

The historical cost principle

The revenue or realization principle

The matching principle

The objective principle

The consistency principle

The full-disclosure principle

The principle of conservatism

All transactions and other items to be accounted for must be in a single,

supposedly stable monetary unit.

An enterprise is an accounting unit separate from its owners, creditors, etc.

Financial data must be reported for particular (short) periods, which makes
accrual and deferral necessary.

Revenue is realized at the moment when goods are sold (or change hands) or
when services are rendered.

The business will continue indefinitely into the future.

The initial price paid for the acquisition of assets is the one that is recorded in
accounts.

This is the contrary of recording “below-the-line” items.

This is one of the justifications for historical cost accounting, which requires no
subjective assessments of replacement values.

This leads to the accrual (accumulation) and deferral (postponement) of costs.

This means that insignificant trivial expenses, like each pencil or typewriter
ribbon, need not be accounted for separately, but are exempted by principle of
materiality.

This prevents companies selecting methods according to the inflation rate, etc.

IX. Complete the text using these words

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credits journals debits ledger double-entry posted invoice receipt
transactions transferred trial balance vouchers

Bookkeepers record every purchase and sale that a business makes, in the order that
they take place, in (1) ………………………………. . At a later date, these
temporary records are entered in or (2) ………………………..… to the relevant
account book or (3) ……………………. Of course the “books” these days are
likely to be computer files. At the end of an accounting period, all the relevant totals
are (4) ………………………..… to the profit and loss account. (5)
………………………………… bookkeeping records the dual effect of every
transaction – a value both received and parted with. Payments made of (6)
……………………………… are entered on the left-hand (debtor) side of an
account, and payments received or (7) ……………………………….… on the
right-hand side. Bookkeepers will periodically do a (8) … to rest whether both sides
of an account book match. In most business (9) …………………………., the seller
of goods or services sends the buyer a bill or (10) ……………………..…, and later
a (11) ………………………… acknowledging payment. Businesses are obliged to
retain the documents – known as (12) ………………………………… – that
support or prove an item in an account, and make them available to the internal and
external auditors who check the accounts. Bookkeepers are not to be confused with
librarians, who also keep books, or with bookmakers, who “make books” in the
sense that they accept bets (on horse races, etc.) and traditionally wrote them down
in a book like a bookkeeper’s journal. Accountants, unlike bookkeepers, analyze
financial records, and decide how to present them

XI. Choose the best alternative to complete the sentence.

It’s up to the accountant to _______ the various financial statements. a)

interpret; b) intercept; c) invent; d) translate.

The bookkeeper keeps a record of every financial _______.

a) action; b) transaction; c) entry; d) transcription.

It’s essential to _______ the invoice number in any correspondence. a)

estimate; b) quote; c) say; d) tell.

The _______ of the invoice goes to the customer, another copy goes to

Sales, and we keep the other one here in Accounts.

a) photocopy; b) issue; c) top copy; d) account.

We’re in _______ with our supplier over this invoice so don’t pay it

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until you hear from me.

a) argument; b) dispute; c) agreement; d) distress.

We send a _______ to customers who haven’t settled their accounts. a)

reminder; b) remainder; c) remembrance; d) memory.

If these figures could be _______ into parts and labor it would make

them easier to understand.

a) set up; b) broken down; c) rounded up; d) laid down.

This company has a weekly _______ of about W100,000.

a) pay; b) payroll; c) salary; d) wage.

Buying that new machinery has seriously _______ our reserves. a)

depreciated; b) depleted; c) depressed; d) deprived.

By examining the balance _______ and other documents we were able to

find out that the company was not doing as well as they claimed.

a) slip; b) ledger; c) account; d) sheet.

Surely we can set some of these expenses _______ tax.

a) against; b) for; c) on; d) from.

The rent for the office is already 3 months _______! a)

overtime; b) in the red; c) in demand; d) overdue.

Due to the economic climate we have had to _______ more bad debts this

year than ever before.

a) tell off; b) write off; c) find out; d) note down.

Do they have enough working _______ to keep trading?

a) capital; b) expenses; c) accounts; d) currency.

15. Such items as buildings and machinery are known as _______ assets.

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a) current; b) hidden; c) fixed; d) liquid.

E. TRANSLATION
Translate the following text into English

KẾ TOÁN CHI PHÍ LÀ GÌ? CÔNG VIỆC CỦA KẾ TOÁN CHI PHÍ

Kế toán chi phí có vai trò quan trọng trong doanh nghiệp. Với tất cả các doanh
nghiệp, đặc biệt là doanh nghiệp về xây dựng, xây lắp, giá thành sản phẩm là tiêu chí
quan trọng mà bất kỳ doanh nghiệp nào cũng cần phải quan tâm bởi nó phản ánh chất
lượng hoạt động sản xuất.
Tổng quan về kế toán chi phí

Kế toán chi phí thực hiện các nhiệm vụ gắn liền với vấn đề của công ty, tổ chức,
doanh nghiệp… Kế toán chi phí có nhiệm vụ tập hợp chi phí sản xuất và đối tượng
tính giá thành phù hợp với đặc thù của công việc và yêu cầu của công tác quản lý.

Kế toán chi phí thực hiện hạch toán các loại tài khoản kế toán để hạch toán chi phí
sản xuất và giá thành sản phẩm phù hợp với phương pháp kế toán hàng tồn kho mà
doanh nghiệp đã lựa chọn.

Đồng thời, vị trí kế toán kho đòi hỏi người làm kế toán cần tổ chức đánh giá khối
lượng sản phẩm một cách khoa học, hợp lý, xác định giá thành và hạch toán giá
thành sản xuất một cách đầy đủ và chính xác.
Công việc của kế toán chi phí sản xuất và tính giá thành sản phẩm

Căn cứ vào đặc điểm tổ chức sản xuất kinh doanh, quy trình công nghệ sản xuất,
loại hình sản xuất, đặc điểm của sản phẩm, yêu cầu quản lý cụ thể của doanh
nghiệp, để lựa chọn xác định đúng đắn đối tượng kế toán chi phí sản xuất, lựa chọn
phương pháp tập hợp chi phí sản xuất phù hợp với điều kiện của doanh nghiệp.
Cũng từ đó xác định đối tượng tính giá thành cho phù hợp.

Trên cơ sở mối quan hệ giữa đối tượng kế toán chi phí sản xuất và đối tượng tính
giá thành đã xác định để tổ chức áp dụng phương pháp tính giá thành cho phù hợp
và khoa học.

130
Tổ chức bộ máy kế toán một cách khoa học hợp lý trên cơ sở phân công rõ ràng
trách nhiệm từng bộ phận kế toán có liên quan đặc biệt là bộ phận kế toán các yếu
tố chi phí và tính giá thành sản phẩm.

Thực hiện tổ chức chứng từ, hạch toán ban đầu, hệ thống tài khoản, sổ kế toán phù
hợp với các nguyên tắc, chuẩn mực, chế độ kế toán đảm bảo đáp ứng được yêu cầu
thu nhận, xử lý hệ thống hóa các thông tin về chi phí và giá thành của doanh nghiệp.

Thường xuyên kiểm tra thông tin về kế toán chi phí, và giá thành sản phẩm của các
bộ phận kế toán có liên quan và bộ phận kế toán chi phí và giá thành sản phẩm.

Tổ chức lập và phân tích các báo cáo về chi phí, giá thành sản phẩm cung cấp
những thông tin cần thiết về chi phí, giá thành sản phẩm giúp cho các nhà quản trị
doanh nghiệp ra được quyết định nhanh chóng và phù hợp với quá trình ản xuất
kinh doanh.

Với việc thực hiện nhiều công việc liên quan đến báo cáo, hạch toán, sổ sách, chứng
từ, kế toán chi phí cần luôn phải chắc chắn trong những việc làm của mình.
http://www.misa.com.vn/tin-tuc/chi-tiet/newsid/63340/Ke-toan-chi-phi-la-gi-Cong-
viec-cua-ke-toan-chi-phi-

F. WRITING
Comment the following quotations

Poverty is the parent of revolution and crime (Aristotle, 384 – 322 B.C.)

A fool and his money are soon parted (G. Buchanan, 1506 - 1582

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 UNIT 11: INTERNATIONAL ACCOUNTING

A READING
Mary Pross: It's great to have you on the team John. I'm sure you will enjoy
working with us. Have you settled in to the new house yet?

John Sinclair: Thank you, yes we finished unpacking last night.

Mary: Good. Now, I know that you worked in our London office for many years,
but you will find a few things different here in the Boston office.

John: Yes, I have been studying the different practices here in the US. I do have a
few questions though.

Mary: Of course, what would you like to know?

John: Firstly, I'd like to know when dividends should be recorded? In the UK we
show them in the period they relate to.

Mary: Here, we show them in the period they are declared.

John: Ok, and can you tell me what anextraordinary item is? I don't really
understand it.

Mary: Ah yes, you wouldn't have heard of this before as it is only in the US.
Basically, it is something which is either very infrequent or rare.

John: Thank you.

Mary: Oh, and you do know about theexemptions for specific investments on cash
flow statements.

John: Yes, I noticed that.

Mary: Ok, well if you have any more questions, just let me know.

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John: There was something else. I wanted to clarify the position on tax deferrals. In
the UK, we only allow for non-currenttreatment, but I read that in the US you can
also treat the deferrals as current. Is this right?

Mary: Yes that is correct, but we don't really do that here.

John: Great, so I don't need to worry about it.

Mary: No, but you will have to pay attention to the convertible debt.

John: Don't you split it between equity and debt?

Mary: No, it is treated as a liability.

John: Looks like I still have some reading to do!

Mary: Don't worry; there are a lot of differences. I spent two years in the UK and
had a really hard time trying to learn the way you do things.

John: What did you have difficulties with?

Mary: It may sound silly, but I just couldn't remember the different terms used.

John: Like what?

Mary: Well, for example - in the UK you say "stock" but here we say "inventory"
or another, we say "allowance for uncollectable accounts" but you say "provision
for bad debts"

John: Yes, I know what you mean - I was reading aboutincome statementslast night
and it took me almost an hour before I realized that it is another term for profit and
loss accounts.

Mary: Ha ha.

John: The good thing is that a lot of the same laws apply in both countries, so it is
not all new. Mostly both systems follow IFRS to some extent.

Mary: Exactly, the most important thing is that you record everything accurately
and then you can always amend the accounts at a later date.

John: And I am right in thinking that Mark will be overseeing me for the first
month?

Mary: Yes, he will be able toassistyou if you need any help, but I believe he is out
of the office until Thursday.

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John: Holiday?

Mary: He wishes, no. He is attending a training session on the new regulations for
escrow accounting.

John: New regulations? I read the 2013 regulations last night, do you mean those?

Mary: No, they changed again and the new regulations supersede the 2013 rules.

John: Seems the law changes even faster here than in the UK.

Mary: Yes, it drives our comptroller crazy. He says he spends more time training
on new regulations than actually working!

John: So it's not just me who needs to study up a bit. Thanks for the help.

B. VOCABULARY
Please find the equivalence of the 20 vocabulary terms in Vietnamese

accurate free from errors, careful

Make sure the figures are accurate before submitting the tax return.

allowance for uncollectable accounts a contra asset account recording debts

which may not be collected
We need to post that debt to the allowance for uncollectable accounts as the
company has gone into receivership and we probably won't be paid.

amend to improve by correcting exiting information

The entry was posted to the wrong account so the account had to be amended.

apply to be suitable, pertinent or relevant to

Different accounting policies apply to different countries.

assist to give help to

How can I assist you?

comptroller the person in charge of the financial accounts of a company

It is the comptrollers responsibility to ensure that the returns are filed on time.

current new, present or most recent

The current legislation differs in several ways from the old.

declare to make known, announce officially or state clearly

The company declared net losses of 2million in the last financial year.

9. dividend a sum of money paid to shareholders

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Shareholders were happy with the company's performance as they received a larger
dividend than in the previous year.

escrow a contract, deed or bond which is deposited with a third person The
purchase may be agreed if the company deposits the funds in an escrow
account.

Exemption not included within, unaffected by

There are many exemptions to the VAT regulations, which makes it harder to know
which items should have VAT and which shouldn't.

extraordinary item gain or loss included in financial reports which come from
infrequent or unusual sources
The losses caused by damage from the flying saucer were recorded as an
extraordinary item.

income statement a financial report which shows the firms net profit or loss over
a given period
It was clear from the third quarter income statement that the company wasn't going
to hit target.

IFRS (international financial reporting standards) A common set of

accounting principles
Both UK and US GAAP differ from the IFRS to some degree.

inventory a complete listing of all goods held by an entity, or the goods which are
on the list
Most retailers keep a large inventory , which needs to be carefully listed for the
accounts.

oversee to supervise
The comptroller carefully oversees all large financial transactions.

record to set down in writing

All income must be recorded for accounting purposes.

18. regulation
a law, rule or other obligation set by an authority
All companies must follow the regulations of the country in which they do business.

split to divide between two or more

As both salesmen achieved the same result, the bonus will be split between them.

supersede to replace in power, validity or effectiveness

The new directive supersedes the old so we need to change the way we operate.

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C. DISCUSSION
1. .What do you know about accounting? How old is it?

2.What century does it date back?

3.When you hear the word ‘accountant’, what kind of work do you draw in your
mind?

D. PRACTICES
I. What do the following abbreviations mean? Check your answers in the
article below.

GAAPO IFRS IAS IASC

International companies can choose how they present financial information to

outside parties. The rules and regulations between countries vary significantly.
Accountants worldwide are familiar with the words “Generally Accepted
Accounting Principles (GAAP)”. Some of the basic principles are:

the going concern principle

the matching principle

the consistency principle

objectivity principle

the prudence principle.

The development of these principles has greatly differed between countries. For
example, in most English-speaking countries it is often accepted practice to offset
unrealized gains from unrealized losses, or to re-value long term assets upwards,
provided sufficient proof of the current value can be shown. This means that accounts
can have very different values, depending on whether the company chooses to follow
local accounting standards, International Financial Reporting Standards (IFRS) –
formerly the International Accounting Standards (IAS) – or U.S. GAAP. Whether the
company can choose is governed by the laws of the country where it is registered. For
example, the U.S.A. and Japan currently allow publicly-traded companies to prepare
their financial statements using the standards of the International Accounting
Standards Committee (IASC), but they must also include a reconciliation to domestic
GAAP.

136
The article mentions four basic principles of accounting. Match them to the
definitions below.

1……………………………………..

This principle is concerned with the timing of the recognition of transactions in the
accounts. Items are recorded when the income or expense arises, and are not
dependent on the movement of cash.

2………………………………………

When preparing accounts, one must assume that the enterprise will still be viable in
the years to come. Practically all accounting items are affected by this assumption,
such as the carrying value of fixed assets and inventories, and the ability to repay
debts and other obligations.

3……………………………………..

What value should be given to the numbers in the accounts? It is normal to act
pessimistically, so that profits and assets are not overstated, and expenses and
liabilities realistically valued.

4……………………………………..

Accounts should be produced using the same principles from one year to the next.
Deviations from this principle must be noted, and the effects on the accounts shown.

5……………………………………….

As accountants we should view the business and its transactions in a dispassionate

way. The accounts should not be prepared with any personal bias. To avoid this bias
figures should, where possible, be backed by source documents.

II. Choose the word or word combination to match the definition.

An accountant who has passed examinations required by the state licensing

officials.

a) government accountant b) private accountant c)

certified public accountant

2. A plan of expected income and expenditure for a particular period of time.

a) budget b) business plan c) forecast

3. The total of separate budgets from different departments within a company.

137
a) budget account b) master budget c) bargain
4. The people who control a company.

a) associates b) assistants c) management

5. The period used by companies and governments for accounting and tax purposes.

a) control device b) fiscal year c) accounting period

A detailed inspection of the accounts of an organization by a professionally

trained person.

a) analysis b) evaluation c) audit

7. A report showing profit and loss for a business or institution.

a) creative accounting b) financial statement

c) standard operating procedure

8. The books, files or computer records where a company's accounts are kept.

a) books b) box files c) recorded delivery

9. An audit carried out by a person not employed by the company.

a) interim audit b) internal audit c) external audit

10. An aim or target.

a) observation b) objective c) obligation

11. A statement about what one thinks will happen in the future.

a) forger b) forfeit c) forecast

12. The amount of work to be done.

a) work permit b) work load c) work release

13. A specialized branch of accounting that deals with government agencies.

a) creative accounting b) governmental accounting

c) current cost accounting

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The recording of all money received into and paid out of a company in a book or
on a computer file.

a) bookkeeping b) auditing c) accounting

15. Dismissing a worker for a period of time.

a) employment b) e lay-off c) sack

16. The person appointed by the court to close a company and dispose of its assets.

a) employer b) creditor c) liquidator

17. A person or an organization that you owe money to.

a) receiver b) creditor c) administrator

18. To be unable to pay your debts.

a) installment b) inefficient c) insolvent

19. To become bankrupt.

a) go too far b) go bust c) rescue

20. A reduction in the amount or quality of something.

a) decline b) growth c) prosperity

III. Fill in the missing words in the sentences below. Choose from the box.

administrative expenses cost of sales distribution divided

extraordinary ordinary retained turnover

As AZ Designs Ltd is a small printing company, all their printing contracts are
known as _________ activities.
Recently, a film a fill company paid AZ Designs a large amount of money to use
the company’s premises when they were making a film. This was recorded in
the Profit and Loss Account as _______ income.
Income which the company makes in its normal activities is known as
______.
At the end of the year, some of the profits may be shared out among the
shareholders who will receive a ________.
The costs of getting the goods to the customers are shown as _______ costs in the
Profit and Loss Account.

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 Materials which are used up in manufacturing and workers’ wages are recorded as
________.
The secretary’s salary and expenses incurred in the office are shown as
_______.
The company may decide to keep some of the profits at the end of the year and
the amount is shown as _______ profits.

IV. Match the items (1-10) with the entries (a-j) from a Trading P&L Account.
Profit and Loss Account £000’s
a) ( ) Turnover 900
b) ( ) Cost of sales 550
Gross profit 350
c) ( ) Distribution costs 60
d) ( )Administrative expenses 45 105245
Other operating income 55
e) ( ) Income from shares in related companies 15 300

Income from other fixed asset investment 20

Other interest receivable 10 45
345
f) ( ) Interest payable 18
Profit on ordinary activities before taxation 327
g) ( ) Tax on profit on ordinary activities 109
Profit on ordinary activities after taxation 218
h) ( ) Extraordinary income 18
Tax on extraordinary profit 6 12

Profit for the financial year 230

Retained profits from last year 40
Transfer for general reserve 60 270

i) ( ) Proposed ordinary dividend 130 190

j) ( ) Retained profits carried to the next year 80

The value of stock at the end of the year has been deducted to arrive at this figure.
Bank interest of the overdraft.
Dividends from investments in shares with voting rights in other companies.
Net invoiced amounts for sales.
This year’s profits which will not be paid out to investors.
The delivery drivers’ wages.
Money received for rent on buildings which have been let for a short time as they
are not being used.
This money will probably be paid out to shareholders.

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 Telephone, stationary and legal fees.
An overprovision for corporation tax from last year.

V. Fill in the missing words or phrases in the sentences below. Choose from the
box.
Cash Accounts

authorization batch beneficiary brought carried cleared contra

discrepancies petty cash remitter threshold transaction

Small amounts of money which are paid out for things such as petrol, soap, and
bus fares are usually recorded in the _______________ book.
The account which receives payment is known as the _______________
while the account sending payment is the ______________.
Each single movement of money in the account is known as a
_____________.
At the beginning of each month the balance from the previous month is recorded
at the top of the account as ______________ forward and at the end of the
month as balance ________________ forward.
The bank statement should be checked against the cash book to make sure the
figures are the same and that there are no ______________.
When several payments are made by computer banking they are normally
transmitted to the bank together in a _______________.
If double entry has taken place within the cash book the item does not need to be
entered in another book as double entry and the item is known
_____________.
When a cheque is received and paid into an account it will be debited to the
account once it has been.
Before instructions can be transmitted to the bank it is necessary to have
_____________ from one, two or possibly three executive officers.
There will normally be a maximum amount of money which can be transferred
from an account and this is known as the _____________.

VI. Fill in the missing words in the sentences below. Choose from the
following:

Appropriation ordinary denomination preliminary

bonus issued preference interim redeemable
uncalled nominal

This company has issued shares in £5 ………………….

At the end of the financial year, profits are first of all allocated to pay the fixed
percentage dividends on …………………………………….… shares.

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The ………………………………..… shareholders have voting rights but do not
have a fixed percentage dividend.

The company have decided to issue ……………………………. shares free of

charge to their existing share holders.

The company is allowed to issue a total amount of shares known as the

authorized share capital or …………………………….. capital. However, the
………………..… capital may be less than that.

There were large ………………………………… expenses in starting the

company.

They have only asked for some of the amount payable on the shares, so there is
still a lot of …………………………………. capital.

2001/2009 written behind a debenture means that it is ………………………..

during that time.

The final accounts should include an ……………………... account which shows

how the company will use the profits.

After trading for six months, the company paid out an

……………………………….. dividend.

E. TRANSLATION

Translate the following text into English

CHUẨN MỰC KẾ TOÁN QUỐC TẾ- NỀN TẢNG CHO MỘT NỀN KINH TẾ
VÀ HỆ THỐNG TÀI CHÍNH VẬN HÀNH HIỆU QUẢ

Trong xu hướng hội nhập kinh tế quốc tế, báo cáo tài chính của các doanh
nghiệp được thực hiện minh bạch với chất lượng cao, phù hợp với thông lệ,
chuẩn mực kế toán quốc tế là nền tảng cho một nền kinh tế và hệ thống tài chính
vận hành hiệu quả.

Minh bạch báo cáo tài chính - nền tảng cho hệ thống tài chính vận hành hiệu
quả

Các vụ bê bối về tài chính và kế toán dẫn đến sự sụp đổ của các tập đoàn kinh tế hàng
đầu thế giới trong những năm qua càng khẳng định rõ báo cáo tài chính (BCTC) lành
mạnh là điều kiện cần thiết cho sự ổn định và tăng trưởng của tài chính toàn cầu. Do
vậy yêu cầu xây dựng thể chế và năng lực kỹ thuật để cải thiện chất lượng BCTC là
hết sức cần thiết.

142
Trong những năm gần đây, có rất nhiều thay đổi quan trọng trong công tác kế toán và
BCTC. Trên bình diện quốc tế, các tổ chức ban hành chuẩn mực kế toán (CMKT)
quốc tế đang trong quá trình bổ sung, sửa đổi, xây dựng trên cơ sở nền kinh tế thị
trường phát triển cao, theo hướng cố gắng hài hòa các nguyên tắc kế toán được thừa
nhận của Mỹ (USGAAP) và các chuẩn mực quốc tế về lập và trình bày BCTC
(IFRS).

Liên minh châu Âu (EU) yêu cầu các tổ chức niêm yết của các nước là thành viên
EU áp dụng CMKT quốc tế, các quốc gia ban hành Chuẩn mực của mình theo
hướng gần với IFRS.

Cho đến nay, Việt Nam đã ban hành được 26 CMKT theo 5 đợt từ năm 2001 đến
năm 2005. Tất cả 26 CMKT Việt Nam đã được bổ sung, sửa đổi theo các CMKT
quốc tế mới ban hành gồm 2 loại: CMKT quốc tế (IAS) và IFRS (sau đây gọi chung
là CMKT quốc tế).

Tuy nhiên, các CMKT Việt Nam đến nay được đánh giá là không còn phù hợp hoặc
chưa đầy đủ, chưa đáp ứng được yêu cầu thực tế tại Việt Nam, cũng như chưa phù
hợp với CMKT quốc tế, trong đó nguyên nhân quan trọng là CMKT về giá trị hợp lý.

Từ năm 2008 cho đến nay, Bộ Tài chính đã nghiên cứu và hướng dẫn kế toán công
cụ tài chính. Do công cụ tài chính rất phong phú, đa dạng, có cơ chế vận hành và
giao dịch phức tạp nên việc ghi nhận, xác định, trình bày và thuyết minh phải tôn
trọng nguyên tắc giá thị trường.

Tuy nhiên các hướng dẫn kế toán về công cụ tài chính chưa được ban hành do Luật
Kế toán năm 2003 chưa quy định về giá trị hợp lý mà mới chỉ quy định nguyên tắc
giá gốc.

Luật Kế toán sửa đổi, bổ sung số 88/2015/QH13 đã được Quốc hội thông qua ngày
20/11/2015 (sau đây gọi là Luật Kế toán 2015), trong đó có bổ sung một nội dung
quan trọng là quy định các nguyên tắc kế toán liên quan đến giá trị hợp lý. Các quy
định về giá trị hợp lý được đề cập trong 3 Điều là Điều 3, Điều 6 và Điều 28 Luật
Kế toán 2015.

Giá trị hợp lý là vấn đề quá phức tạp nên phải quy định trong văn bản pháp luật cao
nhất về kế toán, từ đó tạo ra tiền đề pháp lý mà quan trọng là đặt ra yêu cầu phải có
sự nhận thức và vào cuộc của tất cả các Bộ, ngành và địa phương trong cả nước
nhằm tạo dựng khung khổ pháp lý và triển khai thực hiện các quy định liên quan đến
giá trị hợp lý.

Trên cơ sở Luật Kế toán 2015, Bộ Tài chính sẽ nghiên cứu ban hành các CMKT,
trong đó có CMKT về giá trị hợp lý để hướng dẫn thực hiện Điều 28 là “Bộ Tài
chính quy định cụ thể các tài sản và nợ phải trả được ghi nhận và đánh giá lại theo

143
giá trị hợp lý, phương pháp kế toán ghi nhận và đánh giá lại theo giá trị hợp lý”.

Theo Điều 6 Luật Kế toán 2015 thì “Bộ Tài chính quy định chuẩn mực kế toán trên
cơ sở chuẩn mực quốc tế về kế toán phù hợp với điều kiện cụ thể của Việt Nam”. Do
vậy, chúng ta phải nghiên cứu đồng bộ các CMKT quốc tế để cập nhật các CMKT đã
và sẽ ban hành mới, đặc biệt là giá trị hợp lý và công cụ tài chính vì nó liên quan đến
nhiều CMKT khác.

http://www.misa.com.vn/tin-tuc/chi-tiet/newsid/52420/Chuan-muc-ke-toan-quoc-te--
-Nen-tang-cho-mot-nen-kinh-te-va-he-thong-tai-chinh-van-hanh-hieu-qua

F. WRITING

You work for an accountancy firm and one of your clients is a small airline. This
airline is considering purchasing a new aircraft within the next twelve months to
expand its operations. The airline has asked your firm for advice concerning this
purchase and you have considered the airlines financial position. Write a report for
the airline. Your report should: •explain which internal financial indicators most
accurately show the financial position of this airline •summarize the airlines current
financial position •outline what risks there would be in expansion •advise the airline
on what steps to take next. Write your answer in 200 ñ 250 words in an appropriate
style on the following pages.

144
 UNIT 9: TAXES: Part One

A. READING
In the 21st Century, the number of different taxes that we are obliged to pay has
reached record levels which means as a society we are even less willing to pay
them.

As well as income tax we are exposed to many other taxes including corporation
tax, capital gains tax, consumption tax and property taxes. All of this can be too
much to handle for an SME so accountants are often used to try tominimizethe tax
liability of a company.

Certain taxes are unavoidable though. As a registered business entity you will have
to pay a consumption tax, which would either be sales tax in the US or value added
tax in the rest of the world. Sales tax is levied against the consumer, which means
that the company has no liability other than the act of collecting the tax which is
calculated on the sale price of a product. This tax is held by the company until a
determined time when it is paid to the appropriate governmental department. As
there is no tax due from the production of the goods, sales tax does not affect the
profit of an organization, unlike VAT which is levied on both the consumer and the
producer.

Capital gains tax, which is basically a tax on the sale of anon-inventory asset that
has increased in value since purchase. The difference in value is then treated as a
taxable source of income and thus has tax levied against it. The rate of taxation
varies depending on the income tax bracket of the individual or corporation selling
the asset and whether it is a short or long-term gain. Short term gains are anything up
to one year. As any accountant dealing with capital gains tax knows, it is advisable to
wait for over 12 months after the point of purchase before selling the asset so that
long-term capital gains tax is due at a lower rate. Tax due on both short and long-
term gains can bedeferred by a variety of methods.

Corporation tax is the taxation method for taxing the income of a business entity
classified as a corporation; the tax rate is dependent on thetaxable earningsof that

145
corporation. As with income tax, the tax due may be reduced with the aid of tax
credits.

Tax credits are offered to businesses for a variety of reasons with the most common
of these being, encouragement to invest in alternative energies, encouragement to
employ certain individuals, disaster relief or on earnings outside the US. These
credits are then offset against the tax liability reducing the tax due.

Even individuals are confronted by an often confusing array of taxes. The most
common of these taxes is income tax, which taxes our earnings. People are often
unaware how much income tax they pay as it is dealt with by the employer who,
while calculating the wages for an employee also calculates the income tax due and
deducts this from the pay packet.

The PAYE system in England is the system of paying wages and appropriate taxes
and insurances on the cost of employees. This system allows employers to withhold
any deductions due on an employee’s salary, while calculating the correct payments
for statutory sick and maternity pay.

Tax affects everyone from an employee to the CEO of the largest corporation but if
you are in the position where you employee a good accountant, you can actually
lower your liability by exploiting loopholes in the anti-avoidance legislation.

A common method of avoiding income tax is for an employee in the higher tax
bracket to channel their wages through a shell company, thus changing the type of
taxation from income to corporation. Then drawing the maximum salary whilst
remaining on the lower tax bracket, after a certain number of years the shell
company is thenliquidated.

Accountants can also advise on the best type of investments so as to receive tax
credits from the government.

There is an old expression: “Only two things in life are certain, death and taxes.”
Well, we can’t do anything about the former, but a good accountant can help with
the latter.

B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

anti-avoidance legislation the laws which govern the correct payment of taxes
There is strict anti-avoidance legislation in most countries which means that failure
to pay the full amount of due taxes is punishable by law.

capital gains tax the tax on the increase of value of a capital asset which is then
sold

146
The accountant advised the owner to retain the property for 12 months before
selling so as to reduce the amount of capital gains tax due.

CEO (chief executive officer)

the highest rank in a company
The CEO decided to hire a freelance tax advisor to help solve the problem.

consumption tax the duty which is levied on the sale or purchase of goods The
American system of consumption tax in the form of sales tax is much easier to
calculate than the European system of VAT.

corporation tax the tax which is paid on the earnings of a corporation, or entity
being treated as a corporation
In America the corporation tax rate varies from 15% to 35% depending on the level
of earnings.

defer put off or postpone to a later date

The company accountant deferred the tax due until the start of next year.

liquidate convert into cash

The firm liquidated 50% of their fleet to raise funds for the investment.

8. minimize
try to make as small or little as possible
The accountant minimized the tax liability and saved the company thousands of
dollars.

non-inventory asset any capital asset which is retained by the company and not
likely to be turned into cash within one year under normal trading conditions When
the auditors studied the non-inventory assets and found that two of the company
cars were missing.

obliged to to have an obligation to do something

In most countries employees are obliged to pay national insurance.

offset place over against; to balance; as, to offset one account or charge against
another
The profits for this quarter more than offset the losses from last quarter, so we are
making a profit for the year.

PAYE the system of payroll in the UK, by which employers pay all employees The
payroll clerk uses a computerized PAYE system to submit all payroll records to the
tax office.

statutory of, or relating to a legal statute

147
The statutory sick pay in the UK is just over 60 pounds a week, but most companies
pay more than that.

tax credit an amount of money that a taxpayer is able to subtract from the
amount of tax that they owe to the government
The company received a $45,000 tax credit for investing in solar panels for the new
property.

taxable earnings the gross profit of a company or individual on which tax is

due
As Johns taxable earnings for the year were under the lower level bracket he didn’t
need to pay any tax.

C. DISCUSSION
Should more be done to stop tax avoidance?

How does the tax system in your country differ from those described in the
article?

In your opinion, which is the better form of consumption tax; VAT or Sales tax?
Why?

D. PRACTICES
I. Reading

Governments finance most of their expenditure by taxation. If they spend more than
they levy or charge in taxes, they have to borrow money. So, taxation is the system
by which a government takes money from people and spends it on things such as
education, health, and defence.

Direct taxes are collected by the government from the income of individuals and
businesses.

Individuals pay income tax on their wages or salaries, and most other money they
receive.

Most countries have a capital gains tax on profits made from the sale of assets such
as stocks or shares. This is usually imposed or levied at a much lower rate than
income tax.

A capital transfer tax (commonly called death duty in Britain) is usually imposed
on inherited money or property. Other names for this tax are inheritance tax or
estate tax.

148
Companies pay corporation tax on their profits. Business profits are generally taxed
twice, because after the company pays tax on its profits, the shareholders pay income
tax on any dividends received from these profits.

Companies and their employees also have to pay taxes (called national insurance
in Britain) which the government uses to finance social security spending -
unemployment pay, sick pay, etc.

Indirect taxes are levied on the production or sale of goods and services. They are
included in the price paid by the final purchaser.

In most European countries, companies pay VAT or value-added tax, which is levied
at each stage of production, based on the value added to the product at that stage. The
whole amount is added to the final price paid by the consumer. In Canada, Australia,
New Zealand and Singapore, this tax is called goods and services tax or GST.

In the USA, there are sales taxes, collected by retailers, levied on the retail price of
goods.

Governments also levy excise taxes or excise duties - additional sales taxes on
commodities like tobacco products, alcoholic drinks and petrol.

Special taxes, called tariffs, are often charged on goods imported from abroad.

Income tax for individuals is usually progressive: people with higher incomes pay a
higher rate of tax (and therefore a higher percentage of their income) than people
with lower incomes. Indirect taxes such as sales tax and VAT are called proportional
taxes, imposed at a fixed rate. But indirect taxes are actually regressive: people with
a low income pay a proportionally greater part of their income than people with a
high income.

Answer the following questions.

What is taxation?

Direct taxes are collected by the government from the income of individuals and
businesses, aren’t they?

What direct taxes do you know?

What is the difference between an income tax and a capital gains tax?

What tax do companies pay?

Which tax does the government use to finance social security spending?

149
What are indirect taxes levied on?

What is VAT based on?

Are there any special taxes?

What taxes can be called progressive and regressive?

III. Match the type of tax with the definitions below.

1) capital gains tax a) a tax on money received from salary,
investments, rent
2) income tax b) a consumption tax which is levied at
each stage of production based on the
value added to the product at that stage
3) corporation tax c) a tax that takes a larger percentage from
low-income people than from high-
income people
4) excise duties d) a tax that takes a larger percentage from
the income of high-income earners than it
does from low-income individuals
5) value added tax e) taxes imposed on specific products such
as petrol, tobacco, alcohol
6) progressive tax f) a tax imposed on those who inherit
assets from a deceased person
7) inheritance tax g) a tax on company’s profit
8) regressive tax h) a type of tax levied on capital gains
incurred by individuals and corporations

IV. What are the standard names for the tax or taxes paid on the following?

1. alcoholic drinks and tobacco products — . . .

excise taxes
corporation tax

company profits — . . .

excise taxes
corporation tax

goods bought in stores — . . .

150
 excise taxes
sales tax

money received from relatives after their death — . . .

inheritance tax
national insurance

salaries and wages — . . .

excise taxes
income and social security tax

goods made in other countries — . . .

capital gains tax

tariffs

money made by selling stocks at a profit — . . .

capital gains tax

tariffs

V. Find words in the text with the following meanings.

an adjective describing taxes on revenue or income

a tax that has one rate that is the same for everybody

money paid by the government to sick and unemployed people

a tax that has a higher rate for taxpayers with a higher income

an adjective describing taxes on consumption or spending

VI. Fill in the correct words from the list below.

Indirect, national insurance, income, tax system,

Value Added Tax, excise duty, inheritance

………. tax is paid in relation to how much you earn.

………. tax is charged on goods and services rather than on the money that
people earn.

……….. tax is paid from money you have received from someone who has died.

151
In Britain, …….. is a system in which the money collected is given to people
who are too old or ill to work.

………. is raised on products such as tobacco and alcoholic drinks.

………. is paid to the government on goods and services and can be reclaimed by
retailers.

……….. is a legal system for assessing and collecting taxes

VII. Are the following statements true or false?

Capital gains are generally taxed at a higher rate than income.

The same sum of money can be taxed more than once.

Sales taxes can be both proportional and progressive at the same time.

Excise duties are extra sales taxes on selected products.

Many international companies have their registered headquarters in small

countries where they do only a small proportion of their business.

Employees will generally pay less tax is their employer reduces their salary a
little and provides them with a car.

Tax avoidance is illegal.

Perks and loopholes are forms of tax evasion

E. TRANSLATION
Translate the following text into English

MỘT SỐ KINH NGHIỆM LÀM KẾ TOÁN THUẾ

1. Công việc hằng ngày

Hàng ngày kế toán thu thập, xử lý nhưng hóa đơn chứng từ phát sinh, và tiến hành
hạch toán các chứng từ như:

– Hóa đơn đầu ra, đầu vào để:

152
Theo dõi được số lượng xuất nhập tồn hàng hóa, thành phẩm. Nếu trong kho số lượng
tồn còn ít thì phải có kế hoạch nhập hàng hay sản xuất thành phẩm. Tiến hành tính
giá hàng tồn kho, cập nhật đơn giá nhập xuất.

Theo dõi công cụ dụng cụ, tài sản mua về để hạch toán phân bổ, trích khấu hao vào
chi phí.

Theo dõi công nợ đối với các khách hàng và nhà cung cấp để trả nợ đúng hạn cũng
như thu hồi công nợ phải thu

– Nếu có phát sinh các loại thuế phải nộp kế toán cần đi nộp số tiền thuế này tránh để
bị phạt do chậm nộp.

– Căn cứ vào sổ phụ ngân hàng hoặc sao kê chi tiết hạch toán các nghiệp vụ liên quan
đến tiền đi, tiền đến trong ngân hàng.

– Căn cứ vào các phiếu chi, phiếu thu, giấy nộp tiền vào ngân sách Nhà nước hạch
toán các nghiệp vụ về quỹ.

– Đồng thời phải kiểm tra tính đúng đắn hợp lý của các hóa đơn, xem có bị sai lệch
các thông tin trên hóa đơn không. Nếu có thì điều chỉnh các hóa đơn giá trị gia
tăng như thế nào.

– Sắp xếp các hóa đơn chứng từ, lưu trữ, bảo quản cẩn thẩn và theo một logic để để
dàng tìm kiếm khi cần thiết.

Xem thêm: Học kế toán thuế online miễn phí

2. Công việc hàng tháng

– Kê khai các loại thuế cần thiết như:

Thuế giá trị gia tăng với những doanh nghiệp có doanh thu từ 50 tỷ đồng trở lên.

Thuế thu nhập cá nhân đối với những doanh nghiệp phát sinh số thuế TNCN từ 50
triệu đồng trở lên.

Hạn nộp các tờ khai tháng là ngày 20 của tháng tiếp theo.

Ví dụ: Hạn nộp tờ khai thuế tháng 01/2015 là ngày 20/02/2015.

– Thực hiện các bút toán phân bổ công cụ dụng cụ, trích khấu hao tài sản cố định

– Kiểm tra hồ sơ nhân viên, làm hợp đồng lao động, tiến hành đăng ký mã số thuế
cho nhân viên.

– Cân đối kiểm tra các chỉ tiêu trên bảng cân đối, tránh để dồn việc đến cuối năm.

153
3. Công việc hàng quý

– Cuối quý kế toán cần lập các tờ khai cần thiết như:

Tờ khai thuế giá trị gia tăng: Với những doanh nghiệp mới thành lập, hoặc có doanh
thu < 50 tỷ đồng.

Tờ khai thuế thu nhập cá nhân: Với DN có phát sinh thuế TNCN < 50 triệu.

Lưu ý: Nếu doanh nghiệp không có người lao động nào đến mức phải đóng thuế
TNCN thì không cần làm tờ khai tháng, quý mà chỉ cần thực hiện quyết toán vào thời
điểm cuối năm.

Báo cáo tình hình sử dụng hóa đơn

Đối với thuế TNDN tạm tính từ quý 4/2014 doanh nghiệp sẽ không phải nộp tờ khai
này. Đây chính là điểm mới về thuế thu nhập doanh nghiệp theo thông tư
151/2014/TT-BTC.

– Thời hạn nộp các tờ khai theo quý là ngày 30 của tháng tiếp theo sau quý đó.

Ví dụ: Hạn nộp tờ khai Quý 1/2015 sẽ là ngày 30/4/2015.

Công việc hàng năm

Đầu năm

– Thời điểm từ 01/01 đến 31/01 của năm tài chính kế toán cần hoàn thành nghĩa vụ
nộp thuế môn bài. Số tiền thuế môn bài sẽ căn cứ vào vốn điều lệ của doanh nghiệp
và đã được thể hiện trên tờ khai thuế môn bài.

Ghi chú: Trong năm nếu doanh nghiêp có thay đổi về mức vốn điều lệ làm thay đổi
bậc thuế môn bài phải nộp thì cần phải làm lại tờ khai thuế môn bài cho năm sau và
nộp trước ngày 31/12 của năm đó.

Cuối năm:

– Vào thời điểm cuối năm, công việc quan trọng nhất của một kế toán đó là hoàn
thành bộ báo cáo tài chính. Kế toán cần biết một bộ báo cáo tài chính bao gồm
những gì. Cách lập các bảng biểu trong bộ báo cáo tài chính ra sao.

– Để làm được một bộ báo cáo chuẩn kế toán cần rà soát lại các vấn đề còn tồn đọng
từ trong năm, kiểm tra các số liệu từ chi tiết đến tổng hợp. Kiểm tra lại giữa kê khai
và hạch toán đã khớp nhau chưa.

– Thời hạn nộp báo cáo tài chính năm chậm nhất là ngày thứ 90 của năm tiếp theo

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Ví dụ: Báo cáo tài chính năm 2014 thì hạn nộp cuối cùng là ngày 31/03/2015.

– Sau khi nộp báo cáo xong kế toán cần tiến hành in toàn bộ sổ sách từ chi tiết đến
tổng hợp để lưu trữ phục vụ cho việc quyết toán thuế sau này.

– Các sổ sách gồm:

Sổ cái các tài khoản

Sổ chi tiết các tài khoản, sổ quỹ tiền mặt, sổ tiền gửi ngân hàng..

Các bảng biểu chi tiết như: Tổng hợp công nợ phải thu – phải trả, Bảng phân bổ
CCDC, Bảng trích khấu hao tài sản cố định. ..

Các phiếu thu, chi đi kèm các hóa đơn

Phiếu nhập kho, xuất kho…

Như vậy công việc của một kế toán thuế vô cùng quan trọng. Ngoài việc hạch toán,
kê khai chính xác, còn luôn phải cập nhật những thông tư, nghị định mới để làm sao
áp dụng đúng vào doanh nghiệp của mình.

https://lamketoan.vn/lam-ke-toan-thue-can-biet-nhung-gi.html

F. WRITING
The new head of your financial department wants to know about the taxation
system in your country. He also heard that the taxation system is closely connected
with the financial reporting requirements. Write a report to him explaining the
major points and referring to the relevant laws. Write 150-200 words.

REPORT

Taxation system in our country

________________________________________________________________

_________________________________________________________________

_______________________________________________________________

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 UNIT 13: TAXES: Part Two

A. READING
Welcome, to Tax It - Today we will examine the different types of tax which are in
effect today. There are many kinds of tax, each with a different mechanism of when
and how the tax is due. In business, it is vital to understand when and how each of
these taxes are calculated.

Let's start with sales tax. In the US, this tax is often is often used as a method for
states to generate revenue. Purchases at theretail level (not wholesale) are subject to
sales tax, which is a percentage of the sales price. Sales tax is not standardized, as
individual states can set the applicablerates - these rates generally vary depending on
the product. Sales tax is an indirect tax, as the taxes are collected by the merchant
who then, at the appropriate time pays the tax to the appropriate organ. Sales tax is
also referred to as consumption tax.

Moving on to capital gains tax. Capital gains tax, is the tax which is levied against
any profits from the sale of an asset which was sold for more than it was bought.
This could be, for example, profit made when selling your house, a car, or any
stocks. This is a per annumtax which means that loss from a sale later in the year
can be offset against the profit from an earlier sale. The great thing about this tax is
it only taxes people with enough excess income to actually invest. In other words,
it's a tax the poor don't have to think about.

Like most taxes, property tax is self-explanatory. It's a tax based on the value of an
asset. The most common occurrence of this is tax on your home, but it could also
include your car and anything else the government wishes to tax. Interestingly, the
focus of property tax is on private assets in public view, such as your home or car.
But if you lend a work of art to a museum it can now be subject to the property tax, as
this piece of art in now in the public eye. Similar to the capital gains tax, property tax
generally generates revenue from people who earn enough to have assets worth
taxing.

Income tax, needs no introduction. Everyone of us is aware of this tax and aware of
how much it costs. It taxes the financial income of individuals and companies alike.
Most countries operate abracketed income tax system, so a person making $25,000

156
a year will pay a lower percentage of their income than someone making $80,000 a
year. People are taxed on gross income, while companies generally are taxed on net
income.

Value Added Tax is another consumption tax, similar to sales tax in the US but with
a key difference. It's more complicated as it's applicable at every point in the supply
chain. Generally, each step in the chain of a product being converted from raw
materials to something worth buying, has value added to it. So in the gas industry
you might have 3 steps. The first group pumps oil and sells it to the refiner - tax. The
refiner converts the oil to gasoline and sells it to gas station - tax. You pump the gas
and pay the station - tax. This system is also considered the most fair, since everyone
gets taxed based on the contribution they make to the economy.

You will probably be familiar with most of the taxes talked about today, but there
are some other terms in taxation that you have probably not heard about or don't
understand either what they are or why they exist.

Regressive Tax is a tax that is less strenuous on the rich than it is on the poor. Sales
taxes like that used in the US and the VAT in Europe are regressive taxes as
everyone will have to pay an amount of this tax, but it will be easier for a richer
person to do so. Income tax is the opposite in that it is a progressive tax; the more
you earn, the larger your tax burden is.

A tax imposed to discourage a behavior is called a Tariff. It's most commonly levied
on imports to protect domestic manufacturers. A common example of this is the
situation in China, in which the government levies high levels of import duty on a
variety of products so as to protect the domestic industry. Tariffs are very disruptive
on free markets and pricing. The tax system can also be used to encourage certain
behaviors using tax breaks. Tax breaks are given to entice you to buy green energy
products, borrow to pay for college or used for stimulus in time of need. A tax break
is anything which provides savings, such as tax exemption, tax reduction, or a tax
credit.

As you can see the taxation system is complicated, and for millions of Americans
each year this leads to mistakes on their annual return. The good news is a solution
has been proposed in the form of fair tax which would be one universal sales tax
replacing other taxes.

B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

applicable relating to, or having to do with

VAT is not applicable on education or training services.

bracket a set group with fixed upper and lower limits

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As he earns over $400,000 a year, he is in the highest tax bracket and pays 39.6%
income tax rate.

burden a large amount of money that you owe, or the responsibility to pay this
money
Although he hired a tax specialist, his total tax burden couldn't be reduced.

consumption tax a tax that is added to the price of goods or services which are
bought by the public
Some people say that consumption tax is unfair as even the poor have to buy certain
goods and as a result are taxed.

generate to produce or create something

The company generated profits of 8 million despite the global recession.

import duty a tax placed on goods coming into one country from another
The US imposed a 35% import duty on tires from China to try and protect US motor
workers jobs.

in effect to be active, or being used

There are over 14 different taxes in effect in the US at the moment.

offset to balance one influence against another

They offset the loss on the sale of the fleet against the profits made on the sale of the
factory and reduced the tax liability to zero.

organ an organization that works as part of a larger organization

Contacting the IRS can be difficult as it is often unclear which organ you should be
dealing with.

per annum annual or each year

His new salary is $42,000 per annum.

progressive tax a tax in which the rate of tax is higher on larger sums of money
The progressive system levies more tax against people with higher earnings.

raw materials a substance in its natural state which is used to make something in
an industrial process
The company imports most of the raw materials from China as it is cheaper.

regressive tax
a tax in which poor people pay a higher percentage of their income than rich people
Under regressive tax systems everyone pays the same rate up to a certain limit,
regardless of their earnings.

retail the activity of selling goods to the general public

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The city has several shopping malls with a large retail industry.

subject to to have or experience a particular thing (usually unpleasant)

All business transactions are subject to taxes.

tariff a tax on goods coming into or out of a country

Tariffs are commonly used in times of economic downturn to protect domestic
industries.

tax break a legal means to pay less in taxes

A lot of business's make charitable donations and take advantage of the tax breaks
connected to them.

tax credit an amount of money, calculated on personal situation, that reduces tax
payable
Tax credits are commonly used as a means of providing child benefits to working
parents.

tax reduction an amount of money, not calculated on personal situation, that

reduces tax payable
After the tax reduction was applied, he was left with a tax bill of only $1200.

wholesale the activity of selling goods in large amounts to businesses which then
sell on to the public
Most small businesses buy goods wholesale as it is much cheaper than buying in a
normal shop.

C. DISCUSSION
What is the difference between wholesale and retail?

The vocabulary term "per annum" is borrowed from another language and not
really an English term. What is the story behind this

Can you think of any tax breaks which the government in your country has
introduced recently?

Where can a potential investor go for advice?

What tax advice would you give to an individual who comes to live and work in
your country?

D. PRACTICES
I. Reading

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Taxation in the UK

Taxation in the United Kingdom may involve payments to a minimum of two

different levels of government: the central government (HM Revenue and Customs)
and local government. Her Majesty's Revenue and Customs (HMRC) is a non-
ministerial department of the UK Government responsible for the collection of taxes
and the payment of some forms of state support. HMRC was formed by the merger of
the Inland Revenue and Her Majesty's Customs and Excise which took effect on 18
April 2005. Central government revenues come primarily from income tax, national
insurance contributions, value added tax, corporation tax and fuel duty. Local
government revenues come primarily from grants from central government funds,
business rates in England and Wales, Council Tax and increasingly from fees and
charges such as those from on-street parking.

There are a number of different taxes that you may have to pay in the UK.

You will normally have to pay UK tax on all of your worldwide income if you are a
UK resident. In the UK, an individual is assessed for income tax for the financial
year starting on 6 April in one year and ending on 5 April in the following year.

You must pay corporation tax if your company is resident in the UK. Corporation
tax is payable on worldwide profits after they have been adjusted for tax purposes.

Most working people in the UK have to pay National Insurance contributions

(NICs), which are collected by HM Revenue & Customs (HMRC). There are six
types of NIC, some of which are paid at a flat rate and some which are linked to
earnings. Employers also have to pay NICs on the earnings and benefits they
provide to employees.

PAYE (Pay As You Earn) is the system that HM Revenue & Customs uses to
collect Income Tax and National Insurance contributions (NICs) from employees'
pay as they earn it. You may be sent a PAYE Coding Notice which shows your tax
code, which is used by your employer's pay system to calculate how much tax you
pay. At the end of the tax year you should receive a P60 (End of Year Certificate)
from your employer. This shows how much you have earned during the year and
how much tax you have paid on these earnings.

Taxation in the USA

Taxes are compulsory contributions done by the American citizens and residents to
federal, state and local governments. This money is used by the government to
provide services to the people living in America. Taxes are collected by Internal
Revenue Service (IRS) which is a department in the United States Treasury.

Taxation in the USA has a tax code, which is referred to as Internal Revenue Code
of 1986. It is probably the most complex in the world. The main aim of the Internal
Revenue Code of 1986 is to raise revenues. The code is also used for other

160
purposes, for fulfilling the federal government's political, social and economic
objectives.

Payments are made to four levels. They include:

the Federal government;

the Local government, which includes districts, municipalities, counties as well as

townships;

the Regional government which includes transit districts;

the State government.

There are different types of taxes namely income tax, sales tax, property tax, payroll
taxes, custom duties on import goods and estate and gift tax.

The money you get from wages and self employment is called “Taxable Income”. A
certain amount of this money is withheld from your paycheck. The amount of tax you
pay depends on how much you earn. The rate of income tax depends on how much
an individual earns. Each tax year is from January 1st to December 31st. The last day
to file your income tax return is April 15th.

Social Security taxes provide benefits and services to retired workers, disabled
workers, deceased workers and their families.

Medicare Taxes pay for the services required by the people over the age of 65 years.
To enjoy these Social Security benefits and Medicare benefits a person needs to
work for about 10 years.

Sales taxes are local and state taxes which are added to the amount while buying
items. This tax depends on the cost of the item. These taxes provide services to the
police, firemen and maintenance of roads.

Property Tax is to be paid for your property like house and land. This tax provides
support to government schools and other services.

Comprehension: Agree or disagree with the statements.

Taxation in the United Kingdom involves payments to four different levels.

Her Majesty's Revenue and Customs (HMRC) is responsible for the collection of
taxes and the payment of some forms of state support.

Central government revenues come primarily from grants.

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The financial year in the UK starts on 6 April in one year and ends on 5 April in the
following year.

National Insurance contributions are paid only at a fixed rate.

P60 shows how much you have earned during the year and how much tax you
have paid on these earnings.

The USA Internal Revenue Code of 1986 is the most complex in the world.

The rate of income tax depends on how much an individual earns.

Property Tax depends on the cost of the item.

To enjoy the Social Security benefits and Medicare benefits a person needs to
work for about 15 years

II. Match the beginning of the sentence with its ending.

This department is withheld from your paycheck

Central government revenues are added to the amount while buying

items
You must pay corporation tax is to raise revenues

4.Property Tax is responsible for the collection of taxes

A certain amount of the money is used to calculate how much tax you
pay
The main aim of the Internal Revenue come primarily from income tax,
Code national insurance contributions, value
added tax, corporation tax
7.Sales taxes if your company is resident in the UK

8. A PAYE Coding Notice is to be paid for your property

III. Fill in the correct words from the list below.

National Insurance, Value Added Tax, corporation,

tax return, tax inspector, withholding,
fiscal year, HMRC, income

……………………………………….... is a tax which is taken from pay for the

UK's health and social security system.

………………………..….. tax is payable on worldwide profits.

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……….………………………. is a method of collecting taxes.

In a ……………………………..……. you give information about what you earn

every year.

A …………………………..….. is a period of twelve month arbitrarily chosen for

tax purposes.

………………………... is paid to the government on goods and services and can be

reclaimed by retailers.

A …………………..…… is a person who decides how much tax an individual

should pay.

In Britain …………………... is the government office which collects the main

taxes.

IV. Underline the correct word.

Not everyone/someone needs to complete a tax return. If your tax affairs are
straightforward/straight you may already pay all of the tax due on your earnings or
pensions through your PAYE (Pay As You Earn) tax coding/ code. But you may
need to finish/complete a tax return if you have more complicate/complicated tax
affairs, even if you already pay tax through PAYE. There are also certain
circumstances/requirements in which you will always need to complete a tax return
for example if you're self-employed, a company director, a trust/trustee or if you
have foreign/foreigner income.

V. Fill in articles where necessary.

Internal Revenue Service (IRS) is …………… department in the United States

Treasury.

This money is used by ……………… government to provide services to the

people living in …………….… America.

Are you …………..… UK resident?

There are …………… number of different taxes that you may have to pay in
………… UK.

The financial year starts on …………….… sixth of April in one year and ends on
……………….… fifth of April in the following year.

163
A person needs to work for about ………………… 10 years.

The USA Internal Revenue Code of 1986 is ………………. most complex in the
world.

……………….. individual is assessed for income tax for the financial year.

You need to complete …………….… tax return.

……………………..… certain amount of this money is withheld from your

paycheck.

VI. Find the mistakes and correct them.

Most of public expenditure is financed through a taxation and government

borrowing.

A UK government is known to take nearly 40 % of national income in taxes.

In most countries there are a campaigns for cutting government spending.

It is important to analyze a profits shown in the accounts.

The income of an sole proprietorship must be reported on the proprietor’s

individual tax return.

All individuals resident in an country are liable to income tax.

Retailer will pay value added tax on goods he buys.

Sales taxes fall on the wide range of products.

E. TRANSLATION

Translate the following text into English

THUẾ LÀ GÌ? CÁC KHOẢN THUẾ PHẢI NỘP SAU KHI THÀNH LẬP
CÔNG TY

Sau khi thành lập công ty và được cấp mã số thuế thì doanh nghiệp BẮT BUỘC
nộp các khoản thuế, thể hiện nghĩa vụ của doanh nghiệp đối với nhà nước. Tại
Việt Nam, doanh nghiệp phải đóng 4 loại thuế chính bao gồm: Thuế môn bài,
thuế giá trị gia tăng, thuế thu nhập doanh nghiệp và thuế thu nhập cá nhân

Thuế là gì?

164
Thuế là một khoản nộp bắt buộc mà các thể nhân (cá nhân) và pháp nhân (tổ chức) có
nghĩa vụ phải thực hiện đối với Nhà nước, phát sinh trên cơ sở các văn bản pháp luật
do Nhà nước ban hành, không mang tính chất đối giá và hoàn trả trực tiếp cho đối
tượng nộp thuế. Cụ thể hơn:

Thuế là nguồn kinh phí cần thiết để duy trì, vận hành và thực hiện các chức
năng, nhiệm vụ của các cơ quan nhà nước nhằm mục đích ổn định và phát
triển xã hội.
Thuế bình thường: nhằm mục đích thu ngân sách và điều tiết thu nhập xã hội.
Thuế đặc biệt: là thuế nhằm các mục đích đặc biệt, ví dụ thuế tiêu thụ đặc biệt
đánh vào rượu bia, thuốc lá, xe ô tô nhập khẩu nhằm hạn chế cá nhân tiêu thụ
các hàng hóa này, hay phí thủy lợi nhằm huy động tài chính cho phát triển,
trùng tu hệ thống tưới tiêu, điều tiết nguồn nước của địa phương.

Sau khi hoàn tất thủ tục đăng kí thành lập công ty, được Sở Kế hoạch và Đầu tư cấp
Giấy phép kinh doanh, Mã số thuế thì doanh nghiệp phải tiến hành hồ sơ khai thuế
ban đầu với cơ quan thuế và nộp các khoản thuế sau:

1. Thuế môn bài

Thuế môn bài là thuế bắt buộc doanh nghiệp phải đóng hằng năm, sau khi có GPKD
thì Doanh nghiệp phải nộp Tờ khai lệ phí môn bài cho cơ quan thuế quản lý trực tiếp.

Căn cứ Điều 4 Thông tư 302/2016/TT-BTC quy định về mức thu lệ phí môn bài đối
với tổ chức hoạt động sản xuất, kinh doanh hàng hóa, dịch vụ như sau:

Vốn điều lệ hoặc vốn đầu tư trên 10 tỷ đồng: 3 triệu đồng /1 năm.

Vốn điều lệ hoặc vốn đầu tư từ 10 tỷ đồng trở xuống: 2 triệu đồng /1năm.

Chi nhánh, văn phòng đại diện, địa điểm kinh doanh, đơn vị sự nghiệp, tổ chức kinh
tế khác: 1triệu đồng/1năm.

Ví dụ: Công ty thành lập được cấp Giấy chứng nhận đăng kí doanh nghiệp ngày
20/10/2018, thì phải nộp thuế môn bài năm 2018 là 1.000.000 đồng (vì thành lập 06
tháng cuối năm ).

Lưu ý: Từ ngày 01/01/2017 căn cứ theo Nghị định 139/2016/NĐ-CP về lệ phí môn
bài quy định về hạn nộp tờ khai thuế môn bài như sau:

Việc khai lệ phí môn bài được thực hiện một lần khi người nộp lệ phí mới ra hoạt
động kinh doanh, chậm nhất là ngày cuối cùng của tháng bắt đầu hoạt động sản xuất
kinh doanh.

Trường hợp người nộp lệ phí mới thành lập cơ sở kinh doanh nhưng chưa hoạt động
sản xuất kinh doanh thì phải khai lệ phí môn bài trong thời hạn 30 ngày, kể từ

165
ngày được cấp giấy chứng nhận đăng ký kinh doanh hoặc ngày cấp giấy chứng nhận
đăng ký đầu tư và đăng ký thuế.

Thời hạn nộp lệ phí môn bài chậm nhất là ngày 30 tháng 01 hàng năm. Trường hợp
người nộp phí mới ra hoạt động hoặc mới thành lập thì thời hạn nộp chậm nhất là
ngày cuối cùng của thời hạn nộp hồ sơ khai lệ phí.

Thuế Giá trị gia tăng (Thuế GTGT)

Thuế giá trị gia tăng hay còn nói dễ hiểu là thuế bán hàng, là phần chênh lệch giữa
giá mua và giá bán sản phẩm, hàng hóa.

Có 2 phương pháp tính thuế giá trị gia tăng:

Phương pháp khấu trừ:

Số thuế GTGT phải nộp = Thuế GTGT đầu ra – Thuế GTGT đầu vào

Phương pháp trực tiếp:

Số thuế GTGT phải nộp = GTGT của hàng hóa * Thuế suất GTGT của hàng hóa đó.

Thuế thu nhập doanh nghiệp (Thuế TNDN)

Thuế TNDN là loại thuế thu trên khoản lợi nhuận cuối cùng của doanh nghiệp, sau
khi đã trừ đi các khoản chi phí hợp lý. Tất cả cá nhân, tổ chức, cơ sở sản xuất, kinh
doanh hàng hóa, dịch vụ có thu nhập đều phải nộp thuế TNDN.

Thuế TNDN phải nộp = Giá tính thuế TNDN * Thuế suất

Thuế thu nhập cá nhân (Thuế TNCN)

Thuế TNCN là loại thuế mà doanh nghiệp nộp thay cho người lao động. Thuế TNCN
được tính theo tháng, kê khai theo tháng hoặc quý nhưng quyết toán theo năm.

Thuế TNCN phải nộp = Thu nhập tính thuế TNCN * Thuế suất

Trong đó:

Thu nhập tính thuế TNCN = Thu nhập chịu thuế TNCN – Các khoản giảm trừ

Thu nhập chịu thuế TNCN là tổng TNCN nhận được từ công ty chi trả.

Các khoản giảm trừ bao gồm:

Giảm trừ gia cảnh: Đối với bản thân là 9.000.000 đồng/người/tháng. Đối với người
phụ thuộc là 3.600.000 đồng/người/tháng.
166
Các khoản bảo hiểm bắt buộc: Bảo hiểm xã hội, bảo hiểm y tế, bảo hiểm thất nghiệp
và bảo hiểm nghề nghiệp trong một số lĩnh vực đặc biệt.

https://ketoananpha.vn/cac-khoan-thue-phai-nop-sau-khi-thanh-lap-cong-ty.html

F. WRITING
Write a short report (10-12 sentences). Find information about taxation in
Vietnam. Compare taxation of our country with taxation in the USA and the UK.
Do these systems have much in common? Is there any difference?

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 UNIT 14: AUDITING

A. READING
There are few words for an accountant, which cause as much concern as the word
‘audit’. Audits, whether internal or external, carefully study the accountants work
and identify any errors or abnormalities.

In large firms audits are often used as a control for the work of the accounting
department, in these firms the accounts departments may deal with millions of
dollars a month and without a control process in place there would be no way
ofverifying that the information produced was correct and that the company wasn’t
being defrauded.

These internal audits can take one of two forms, either being carried out by the CFO
and his team or by a specially commissioned external firm of auditors. The second
option is by far the most popular as it ensures objectivity in the audit.

In either of these forms, the auditors are responsible for confirming thevalidity of
the records produced by the accounting department. This can be done by cross-
checking the accounts workings with the source information, although in larger
firms this can be too time consuming. In these cases statistical sampling, in which
a random sample is checked can provided reasonable proof of accuracy.

These audits may be financial or managerial in nature, in that they can confirm the
workings of the financial accounts or of management accounts.

The primary function of these audits is to demonstrate that the company is

following all expected standards whether they be accounting or production. Each
department can be audited to confirm that they adhere toset procedures and to
ascertain that each process is as described.

As the auditors are acting on behalf of the management board of the entity all
findings are kept in strict confidence and are only shared with the management
board and any stakeholders, who then interpret the results and act on the
recommendations of the auditors.

168
External audits confirm the entity’s legal obligation to pay certain taxes and duties.
In the US this may be done by the IRS.

These audits cause both accountants and senior managers large amounts of stress as
the outcome of the audit can determine the future of the company being audited. Of
course, not all companies are audited every year.

The IRS choose the companies and individuals to be audited based on a series of
indicators including the level of income with both very high and low levels of
income having the potential to cause an audit, comparative studies of your past
years return and that of your competitors, dramatic changes in income, incomplete
or sloppy tax returns, and a high number of itemizations or charitable
contributions.

Once a company has been chosen for an audit, you are notified by mail informing
you of the type of audit: mail by post, office at an IRS office or field in the tax
payer’s premises. You will also be informed what documentation will be required.

The auditor’s duty is to confirm that the information which was submitted in the tax
return is true and that the methods of accounting comply with accounting standards.
The auditor’s findings are then shared with the IRS who will act on it.

Publicly traded companies are treated slightly differently in auditing. The focus is
on providingtransparencyto ensure investor confidence; this is done by imposing
criminal status to the filing of incorrect financial documentation.

In the US, government auditing is not only a process of confirming a tax liability
but also a method of establishing the performance of a non-profit organization
(NPO). These performance audits may include such checks as whether the NPO is
making sound investments, purchasing the correct goods and a fair price and that
employees of the NPO conduct themselves in a way reflecting the organizations
best interests.

B. VOCABULARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

abnormality something which is not typical or appearing to be right Several

abnormalities were discovered during the audit, which resulted in the
company being taken to court.

act on do something as a reaction

The board decided to act on the performance auditor's recommendations and
instituted new purchasing procedures.

adhere to follow or obey

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Each company should adhere to the accounting standards of the country that they
operate in.

audit an examination of records or financial accounts to check their correctness The

IRS audit will take place next week, so make sure all documentation is ready by then.

control a standard of comparison for checking or verifying the results

The company has several control systems in place to ensure theft does not happen.

defraud illegally take money from someone by using deceit

Mr Franks was convicted of defrauding the company out of millions.

itemization to place individual items as a list

Itemization of expenses helps in identifying areas of high cost.

objectivity the state of being uninfluenced by emotions or personal prejudices

Audits are often performed by external auditors to maintain objectivity.

outcome the end result

The outcome of the meeting was the decision to relocate to Brazil.

sloppy untidy or with mistakes

James was fired for being too sloppy in his work, after it was noticed that he had
made several serious mistakes.

sound having a firm basis

John has a sound knowledge of financial matters but he has never dealt with an IRS
audit so the CFO insisted on being present during the audit.

statistical sampling the process of checking an entity based on a small amount of

data taken at random
The auditor chose one month at random for statistical sampling.

transparency the state of providing clear visible information to all involved in an

activity
Increased transparency in the accounting department has increased shareholder
faith in the company.

validity being correct and valid

The validity of the accounts was questioned by the IRS and an audit was performed.

verify prove the truth of by presentation of evidence or testimony The

accounts manage must verify all payments over $10,000.

C. DISCUSSION
170
Would you like to work as an external auditor? Do you think they get a very
friendly welcome at the companies whose accounts they audit? If not, why not?

D. PRACTICES
I. Read and translate the text

Auditing may be defined as the examination and testing of financial statements. In

all countries of the world society relies heavily auditors for credible financial
reports. In Britain, for example, all public corporations and many companies
applying for sizable loans must have their statements audited. The same holds true
for Russia as well.

The main objective of auditing is to give the auditor's professional opinion as to

whether the company's financial reports correctly present its financial position
Auditors are known to check and test all accounting records. In order to do that they
must prove cash balances, confirm physical inventories and verify the amounts owed
by customers Apart from that auditors must also decide whether the company's
records are kept in accordance with accepted accounting practice.

It should be said that an audit can start only once necessary accounting work has
been completed. However, in practice, especially 'in the case of small companies,
the distinction, between auditing and accounting work is not clearly appreciated.
This is determined by the fact, that small companies have very often limited book-
keeping capabilities. So, it is always tempting for them to leave things to the auditor
to complete. It should be clearly understood that preparation or completion of
accounts is the accountant's task and not the auditor's.

Thus, although many accountants readily undertake both accounting and audit work,
these tasks are undertaken with different objectives in view. It would, however, be
quite wrong to infer from this that accounts preparation work provides no audit
assurance. It is now generally accepted that the assurance derived by auditors from
preparing accounts contributes greatly to the overall assurance required. And that in
its turn allows reduced testing in other areas.

Read the text again and choose the best variant:

1. Auditing is defined as…

the examination and testing of financial statements

the science about tax revenues

2. The main objective of auditing is…

a) to give partly information about the financial reports of a company

171
to prove cash balances and verify the amounts of the companies

to give the auditor’s professional opinion in this sphere

3. Auditors are known …

to describe the financial situation of a company or a firm

to check and test all accounting records

to prove cash balance

4. Preparation or completion of accounts is…

the auditor’s task

the financier’s task

the accountant’s task

5. The assurance is derived by auditors from preparing…

balance-sheets

financial reports

accounts contributes to the overall assurance required

II. Fill in the gaps from the table. Then read and translate:

reports auditors reports accordance inventories corporations records testing

objective practice

Auditing may be defined as the examination and ………………1… of financial

statements. In all countries of the world society relies heavily …………2…for
credible financial …3…. In Britain, for example, all public …4……………and
many companies applying for sizable loans must have their statements audited. The
same holds true for Russia as well.

The main ……….…5…of auditing is to give the auditor's professional opinion as to

whether the company's financial …………..…6…correctly present its financial
position Auditors are known to check and test all accounting. In order to do that
they must prove cash balances, confirm physical ……………..8…and verify the
amounts owed by customers Apart from that auditors must also decide whether the
company's records are kept in ……………….9… with accepted accounting
…10……………………………….

172
Read the whole text again and choose the best answer:

1. How may auditing be defined?

as the science about financial reports

as the science of examination and testing of financial statements

2. What is always expected from auditors?

auditors have to check and test accounting records

auditors have only decide whether the company’s records are kept

3. What is the main objective of auditing?

to give the auditor’s professional opinion in auditing

to prove cash balances and verify the amounts of the companies

4. What must auditors do to check and test records?

they must prove cash balances only

they must not only prove cash balances but confirm physical inventories and
verify the amounts owed by customers

5. Is preparation or completion of accounts the auditor’s task?

preparation of accounts is the auditor’s task

preparation or completion of accounts is the accountant’s task

III. Read and translate the text into Vietnamese

Auditing is the inspection of the accounting records and procedures of a business or

organization, by a trained accountant, mainly for the purpose of forming an opinion
on the fairness and truth of the financial statements. Usually an audit is conducted by
someone from the company itself, an internal audit or by a third-part auditor - an
independent or external audit.

An independent audit examines not just the finances of a business, but every other
area as well. This is generally to make sure that the company’s procedures are being
followed, and to determine whether illegal activity such as embezzlement took place.
A tax audit determines whether the appropriate tax was paid.

The benefits of an audit are numerous. Audits can improve a company’s efficiency
and profitability by helping the management better understand their own working
173
and financial systems. The management, as well as shareholders, suppliers and
financers, is also assured that the risks in their organization are well-studied, and
effective systems are in place to handle them.

Audits can also identify areas in an organization’s financial structure that need
improvement, and how to implement the proper changes and adjustments. Having
an audit also lessens the risk and therefore the cost of capital.

An audit can uncover inaccuracies and discrepancies within an organization’s

records, which may be indications of weak financial organization or even internal
fraud, although fraud detection is not the main purpose of an audit.

The benefits of an audit:

Analyze and understand your company’s financial records.

Identify key areas for improvement in your company.

Assess risks, economy, efficiency and quality.

Evaluate new technology.

Uncover fraudulent or other illegal activities within your company.

Reinforce and strengthen internal control.

Auditors have a unique broad perspective of a company which they apply to deliver
effective analyses and relevant information. Management can use this information to
evaluate the company and implement measures necessary to meet their objectives.

IV. Match the words with the definitions:

improvement a to make or become less

adjustment b right or suitable; fitting
an illogical or surprising lack of compatibility or similarity
illegal between two or more facts
a control for regulating
appropriate
the act of improving or the state of being improved
to lessen the members of the executive or administration of an
organization or business
to evaluate
to judge or assess the worth of; appraise
the
management obtained,deception done by, or involving deception, especially criminal

to reinforce

174
Fraudulent
i to give added strength or support to
(adj.)
discrepancy j forbidden by law; unlawful; illicit

V. Fill in the gaps.

profitability examines well-studied tax shareholders procedures to determine

embezzlement benefits improve

An independent audit …1… not just the finances of a business, but every other area
as well. This is generally to make sure that the company’s

…2… are being followed, and …3…whether illegal activity such as …4… took
place. A tax audit determines whether the appropriate …5… was paid.

The …6… of an audit are numerous. Audits can …7… a company’s efficiency and
…8… by helping the management better understand their own working and
financial systems. The management, as well as …9… , suppliers and financers, are
also assured that the risks in their organization are …10… , and effective systems
are in place to handle them.

VI. Read the text again and put the sentences into a chronological order:

The management, as well as shareholders, suppliers and financers, are also

assured that the risks in their organization are well-studied, and effective systems
are in place to handle them

An independent audit examines not just the finances of a business, but every
other area as well.

Auditors have a unique broad perspective of a company which they apply to

deliver effective analyses and relevant information.

Usually an audit is conducted by someone from the company itself, an internal

audit or by a third-part auditor - an independent or external audit.

A tax audit determines whether the appropriate tax was paid.

The benefits of an audit:

Analyze and understand your company’s financial records.

Identify key areas for improvement in your company.

Assess risks, economy, efficiency and quality.

Evaluate new technology.

175
Uncover fraudulent or other illegal activities within your company.

Reinforce and strengthen internal control.

VII. Read and choose the best answer to the question:

Auditing may be defined as the examination and testing of financial statements. In

all countries of the world society relies heavily auditors for financial reports. In
Britain, for example, all public corporations and many companies applying for
sizable loans must have their statements audited. The main objective of auditing is to
give the auditor's professional opinion as to whether the company's financial reports
correctly present its financial position. Auditors are known to check and test all
accounting records. In order to do that they must prove cash balances, confirm
physical inventories and verify the amounts owed by customers. Apart from that
auditors must also decide whether the company's records are kept in accordance with
accepted accounting practice.

It should be said that an audit can start only once necessary accounting work has
been completed. However, in practice, especially in the case of small companies,
the distinction, between auditing and accounting work is not clearly appreciated.
This is determined by the fact, that small companies have very often limited book-
keeping capabilities. So, it is always tempting for them to leave things to the auditor
to complete. It should be clearly understood that preparation or completion of
accounts is the accountant's task and not the auditor's.

Thus, although many accountants readily undertake both accounting and audit work,
these tasks are undertaken with different objectives in view. It would, however, be
quite wrong to infer from this that accounts preparation work provides no audit
assurance. It is now generally accepted that the assurance derived by auditors from
preparing accounts contributes greatly to the overall assurance required. And that in
its turn allows reduced testing in other areas.

How may auditing be defined?

Auditing may be defined as …

a)the preparation and checking of financial statements.

the examination and checking of financial records.

the examination and testing of financial statements.

2. What is always expected from auditors?

In all countries of the world society relies heavily auditors for …

a) financial reports.

176
financial data.

accounting information.

3. What is the condition for receiving sizable loan?

All public corporations and many companies applying for sizable loans …

must have their accountants audited.

must have their balance sheets audited.

must have their statements audited.

4. What is the main objective of auditing?

The main objective of auditing is to give the auditor's professional opinion …

as to whether the company's financial reports correctly present its financial

position.

about future business plans.

as to whether the company's annual balance correctly present its current financial
position.

5. What must auditors do to check and test accounting records?

In order to do that they must …

prepare cash flow forecast, confirm physical inventories and verify the amounts
owed by accountants.

accept cash balances, confirm physical inventories and verify the amounts owed by
accountants.

prove cash balances, confirm physical inventories and verify the amounts owed by
customers.

6. Is preparation and completion of accounts an auditing task?

It should be clearly understood that preparation or completion of accounts …

is the accountant's task and not the auditor's.

both the accountant's task and the auditor's.

nether the accountant's task nor the auditor's.

177
VIII. Fill in the gaps.

accepted main public financial position confirm test loans society opinion

Auditing may be defined as the examination and testing of …1… statements. In all
countries of the world …2… relies heavily auditors for financial reports. In Britain,
for example, all …3…corporations and many companies applying for sizable …4…
must have their statements audited. The …5… objective of auditing is to give the
auditor's professional …6… as to whether the company's financial reports correctly
present its financial …7… . Auditors are known to check and …8… all accounting
records. In order to do that they must, prove cash balances, …9… physical
inventories and verify the amounts owed by customers. Apart from that auditors must
also decide whether the company's records are kept in accordance with …10…
accounting practice.

IX. Match the term with the definition:

a statement, assertion, etc., intended to inspire confidence or give

a
a report encouragement
a loan b having a limit; restricted; confined
an to examine, investigate, or make an inquiry into (facts, a product, etc.)
c
opinion for accuracy, quality, or progress, esp rapidly or informally
an account prepared for the benefit of others, esp. one that provides
d
a record information obtained through investigation
to check e judgment or belief not founded on certainty or proof
to f an account in permanent form, esp. in writing, preserving knowledge
confirm or information about facts or events
limited g to prove to be true or valid; corroborate; verify
assurance h property lent, esp. money lent at interest for a period of time
auditor i the quality of being capable; ability
capability j a person qualified to audit accounts

Complete the sentences below. Use the key words if necessary.

Internal auditing

After bookkeepers complete their accounts, and accountants prepare their financial
statements, these are checked by …………..……….. An……………..………..is an
examination of a company's accounts by its own internal auditors or
…………………. They ………………….the accuracy or correctness of the
accounts, and check for errors. They make sure that the accounts
…………….………, or follow, established policies, procedures, standards, laws
and regulations. The internal auditors also check the company's ………..………….,
related to recording transactions, valuing assets and so on. They check to see that

178
these are adequate or sufficient and, if necessary,………….………………changes
to existing policies and procedures.

External auditing

Public companies have to ………………….…..their financial statements

to……………….……….— independent auditors who do not work for the
company. The auditors have to give an opinion about whether the financial
statements represent a true and fair view of the company's financial situation and
results.
During the audit, the external auditors examine the company's systems of internal
control, to see whether transactions have been …………………………correctly.
They check whether the assets mentioned on the balance sheet actually exist, and
whether their valuation is correct. For example, they usually check that some of the
debtors recorded on the balance sheet are genuine. They also check the annual
……………..……….— the count of all the goods held ready for sale. They always
look for any unusual items in the company's………………………………….or
statements.

Until recently, the big auditing firms also offered ……………………….services to

the companies whose accounts they audited, giving them advice about business
planning, strategy and restructuring. But after a number of big financial scandals,
most accounting firms separated their auditing and consulting divisions, because an
auditor who is also getting paid to advise a client is no longer totally independent.

Irregularities

If control systems are adequate, accounting principles have been applied correctly,
according to external auditors — auditors produce an …………….……. Otherwise
auditors find …………………. In that case auditors write a
…………....…………to directors or senior managers explaining what needs to be
changed. If the company follows the advice given in the management letter auditors
produce an audit report. Otherwise auditors produce a …………….…………..,
stating that the financial statements do not give an entirely true and fair view and
there are some problems.

XI. British English or American English?

stock take
count of the inventory

XII. Match the descriptions with the job titles.

Company employees who check o external auditors
the financial statements — . . . o bookkeepers
Expert accountants working for o accountants
independent firms who review o internal auditors

179
 companies' financial statements
and accounting records — . . .
People who prepare financial
statements — . . .
People who prepare a
company's day-to-day accounts
— ...

TRANSLATION
Translate the following text into English

NGHỀ KIỂM TOÁN

Nếu kế toán cung cấp các thông tin về tài chính cho các đối tượng quan tâm thì kiểm
toán là công việc kiểm tra, xác minh tính trung thực và hợp lý của các báo cáo tài
chính đó.

Bằng hệ thống phương pháp nghiệp vụ chuyên môn, kiểm toán viên xác minh và bày
tỏ ý kiến về thực trạng hoạt động tài chính của các doanh nghiệp, tổ chức…

Công việc của các kiểm toán viên là phát hiện các sai sót và gian lận trong hoạt động
tài chính, kế toán. Nếu bạn thích thử thách và khám phá, bạn luôn có cơ hội để khẳng
định mình. Nghề kiểm toán đòi hỏi bạn phải tiếp xúc nhiều đơn vị kiểm toán với các
tình huống khác nhau và lúc nào bạn cũng phải vận dụng hết năng lực, óc phân tích
và tư duy sáng tạo của mình.

Nghề kiểm toán đòi hỏi kiểm toán viên phải nhạy bén với những con số nhưng đồng
thời cũng phải kiên nhẫn, tỉ mỉ, cẩn trọng với hồ sơ, sổ sách. Không chỉ là tính toán
mà còn cần có khả năng tiếp thu, ghi nhớ các văn bản luật pháp, chính sách về thuế,
các vấn đề kinh tế, xã hội…Có khả năng giao tiếp, diễn giãi vấn đề với đối tác. Có
khả năng tổng hợp, làm việc độc lập, đồng thời kỹ năng làm việc nhóm cũng thật tốt.

Công việc chính của kiểm toán viên

Với sự nở rộ của hàng loạt doanh nghiệp trong các lĩnh vực mỗi năm sẽ mở ra cơ
hội nghề nghiệp rộng mở cho ngành Kế toán kiểm toán, chưa kể đến các tổ chức
chuyên về kiểm toán quốc tế cũng luôn cần nhân lực vững chuyên môn, giỏi ngoại
ngữ. Mức lương khởi điểm của người hoạt động chuyên về kế toán kiểm toán luôn
mức cao, đặc biệt làm việc tại các công ty kiểm toán nước ngoài. Ngoài ra, làm
việc trong môi trường này, bạn có nhiều cơ hội thăng tiến trong nghề hoặc chuyển
sang các vị trí quản lý cao trong lĩnh vực kế toán, kiểm soát tài chính.

Những vị trí công việc bạn có thể đảm nhiệm:

180
Lập kế hoạch kiểm toán: Trên cơ sở phân tích mục tiêu, giới hạn và nguồn tài liệu đã
thu thập được, nhân viên kiểm toán lên kế hoạch các công việc phải thực hiện để hoàn
thành nhiệm vụ.

Xây dựng chương trình kiểm toán: xác định số lượng và thứ tự các bước kể từ điểm
bắt đầu đến điểm kết thúc công việc kiểm toán.

Thu thập thông tin bằng các phương pháp kiểm toán như kiểm toán cân đối, đối chiếu
trực tiếp, đối chiếu logic, kiểm kê, điều tra, trắc nghiệm…

Ghi chép các phát hiện, những nhận định về các nghiệp vụ, con số, các sự kiện v.v…
để tích lũy bằng chứng khách quan cho kết luận kiểm toán.

Lập báo cáo, đưa ra những kết luận khái quát về báo cáo tài chính của đơn vị.

Phẩm chất và kỹ năng cần thiết

Tính độc lập: không bị phụ thuộc vào bất cứ khách hàng cũng như một số liệu tài
chính nào

Tính thận trọng: chỉ công bố điều gì khi có đủ bằng chứng.

Khả năng diễn đạt gãy gọn, khúc chiết

Óc quan sát và tư duy phân tích cao

Chăm chỉ học hỏi

Giỏi tính toán, yêu thích những con số

Khả năng chịu đựng áp lực công việc

https://www.uef.edu.vn/huong-nghiep/nganh-nghe/nghe-kiem-toan-1379

F. WRITING
What responsibilities do auditors have in their relationship with their clients? How
is this
regulated in your country or in a country you know? Is the regulation strong
enough?

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 UNIT 15: THE FUTURE OF ACCOUNTING

A. READING
Since man started conducting business almost 7000 years ago, there has been a need
to record and track these transactions - from this need came accountancy. As business
changes so, too, does accounting andpriormethods are forced to change-so the
question is: how will accounting change as we move into the future?

There are many predictions on this topic, but in this article we have selected our top
5 for you.

1. Web-based technology

Although there are already web-based accounting solutions, we expect to see the
number and functionality of them improve greatly in the coming years. These
solutions will include software which integrates with the various government
taxation organs. The result of which will be a system where compliance work is
automated.

Current predictions are that this will reduce the amount of time spent on compliance
work by 10% - 40%. As such firms will need to undertake new services which will
offset this loss in billable hours and make it possible to stay afloat.

2. Simplified compliance

The trend of simplified compliance isn't new, and shouldn't come as a surprise to
anyone. The simple truth is that governments want to be reelected, so it is in their
own best interests to satisfy the people, and one way of doing that is to reduce the
amount of red tape associated with owning and running a business.

182
We already have online filing of tax forms, and online help desks in taxation
authorities - so the continuation of this trend may see a complete shift to a paperless
system of accounting.

3. Fewer, but larger firms

Unlike the majority of professions, the accounting profession is still a cottage

industry comprised primarily of thousands of small firms. In fact, it isestimated
that there are over 1.2 million accounting firms worldwide, but only 60,000 have
revenues of over $3 million, with most firms having fewer than 5 staff.

Most small accounting firms are currently made up of 2 partners and a handful of
staff, who are only capable of offering limited services.

Arising from the reduction in compliance work, these firms may find it unprofitable
to continue in this sector so we are likely to see smaller firms merging to form
companies which can offer an extendedrange ofservices.

4. Additional services

In conjunction withpoint 3, larger firms will find themselves competing for clients
by offering services which were traditionally offered by financial advisors, or even
legal council. We expect these services to include:

Growth - helping with the development of the clients company by advising them
on methods to grow the business.

Succession - aiding clients in selling commodities, or part or all of the business

when the time is right.

Planning - developing strategic plans for the company including asset and the
owners, this is likely to take in retirement planning.

These additional services will aim at integrating all clients needs in one place, and
will add to the growing trend for such work to be outsourced.

5. Business success center

By offering the additional services mentioned above, the accounting firm will be
transformed into a center for business success. We speculate that these centers will
be much more client friendly and each client will have their own relationship
manager who will be responsible for advising on the best package of services for the
client. This will avoid the current system of duplication of questions, when a client
speaks with an accountant, a lawyer and a financial planner separately.

183
While these are only predictions of what will happen in the coming years and do not
take into account any unknowns, one thing is for certain: the future of accounting
looks exciting

B. VOCARUBLARY
Please find the equivalence of the 15 vocabulary terms in Vietnamese

arising from to happen because of, or owing to

There are many costs arising from the purchase of new property.

billable time spent working that you can charge money for
Some firms charge a flat rate rather than using a system of billable hours.

commodity a product, or financial product that can be traded

The firms most valuable commodity is its property.

compliance the procedure of obeying a law, regulation or rule

Most large accounting firms have a compliance officer to ensure that all
regulations are followed.

cottage industry a business activity in which there are many individuals or small
firms working
Large multinational firms are killing off the cottage industry in most sectors.

duplication the practice of doing the same thing more than once
The company used both traditional ledgers and an accounting computer program to
record transactions, but the duplication of work took too much time so they stopped.

estimate to say what you believe the cost, size, value of something is when you are
not certain
The government estimates that there are 3.5 million unemployed people in the
country, but no one is sure.

In conjunction with combined with

The low number of graduates in conjunction with the high demand for their skills
means finding a job is easy.

integrate to combine two or more things to make it more effective

They are planning to integrate the sales and marketing departments.

10 .merge to join together, or be joined together - to make a larger company

When the two firms merged they became an industry leader.

outsource to employ an outside company to do work for you

A lot of bookkeeping work is outsourced to India as salaries are much lower.

184
prior before, previous
He hadn't had any prior experience so he didn't know what he was doing.

range of a set of similar products or services which are sold by a company The
firm offers a wide range of accounting solutions.

reallocation changing the way in which an amount of money, asset, time is used The
company's reallocation of funds from R&D into marketing, showed that they needed
to improve their image.

red tape official rules and procedures which seem unnecessary and cause delay
International accounting is often delayed by red tape.

speculate to guess, to form opinions without having all information

We can only speculate what accounting firms will look like in 200 years.

stay afloat have enough to remain in business

Many companies struggle to stay afloat in the current economic crisis.

take into account to consider or remember something when evaluating a

situation
The CFO didn't take the predicted rise in the price of fuel into account when
budgeting for the year, so costs were higher than he expected.

trend a general development or pattern in the way people behave

By studying current trends, we can get an idea of what will happen next.

20. undertake
to do, or begin to do something
He needs to undertake correct budgeting practices.

C. DISCUSSION
Which of these predictions do you think will come true and which won’t ? Why?

What are your predictions for the future of accounting?

How will the predictions in the article and your predictions affect your
profession?

D. PRACTICES
I. Read the text to find out what important trends will bring forth in the 21st
century accounting

185
What will accounting be like in the future? This is not an easy question to answer. It
is well-recognised that accounting has played a crucial role in the development of
human society. The medium of accounting itself is thought to have a great impact on
economic thinking and economic activity in all countries of the world. The enormous
growth of industry in the twentieth century has expanded the boundaries of
accounting and, as a result, the needs for accountants have increased. Some
accounting experts believe that this trend will continue in the 21st century as well.
New dimensions of accounting will be recognised and its comparatively new fields
will be dynamically developing. The very terminology of accounting will be changed
to bring forth «social accounting», «green accounting», «tax accounting», etc.

In the 21st century the world will continue to move slowly towards a single
economy. As trade and investment flows expand, this tendency will certainly
contribute to an open global economy. As a result, there may appear more favourable
conditions in the future for developing the uniformity of international accounting
standards. Harmonising accounting standards internationally will improve the
comparability of accounting information throughout the world and will to greater
international understanding of accounting practices. In turn, more comparability will
improve the analysis of financial statements. A single set of financial accounting
standards will also save corporations' time and money since they will no longer have
to multiple sets of financial statements. In a word, establishing international
standards, accepted in many countries, is believed to raise the quality of accounting
throughout the world.

At present, however, there are many problems on the way of setting such
international standards. One is that accountants and users of accounting information
have not been able to agree on the goals of financial statements. Another problem is
certainly the differences in the way in which the accounting profession has developed
in different countries, not to speak about differences in the laws regulating
businesses, differences in the requirements of governments and other bodies. And
still other differences are the ones that exist among countries in the basic economic
factors affecting financial reporting, and inconsistencies in practices recommended
by the accounting professions of different countries. While last but not least, there are
opponents among accounting experts in different countries in relation to setting up
accounting standards internationally. They think it would not make much sense to
impose harmonisation because user needs are not similar internationally. And
accounting is relevant only when it is responsive to the business environment in
which it operates. Thus, there are grounds to think that the tendency of harmonising
accounting standards internationally will continue to develop in the future, but its
implementation will require time and organised efforts on the part of international
accounting organisations.

II. Match the English words with their definitions:

1. accounting a) the system of recording and summarizing business and

186
 financial transactions and analyzing, verifying, and reporting
the results
marked by usually continuous and productive activity or
b)
2. impact change
3. trend c) something that is needed or that must be done
4. dimension
d) one of the elements or factors making up a complete
personality or entity

5. comparative e) the quality or fact of having parts that disagree with each other
adjustment of differences and inconsistencies among different
6. dynamic f) measurements, methods, procedures, schedules, specifications,
or systems to make them uniform or mutually compatible.
7. standard
g) the force of impression of one thing on another: a significant
or major effect
a prevailing tendency or inclination; a line of general direction
h)
8. requirement
or movement
inconsistency i) something established by authority, custom, or general
consent as a model or example
harmonization j) characterized by systematic comparison
especially of likenesses and dissimilarities
III. Fill in the gaps with appropriate words:

uniformity quality standards expand establishing

contribute comparability economy analysis statements

In the 21st century the world will continue to move slowly towards a single
1…………..… . As trade and investment flows 2………………….. , this tendency
will certainly 3………………………… to an open global economy. As a result,
there may appear more favourable conditions in the future for developing the
4……………………… of international accounting standards. Harmonising
accounting standards internationally will improve the 5……………………… of
accounting information throughout the world and will to greater international
understanding of accounting practices. In turn, more comparability will improve the
6……………………… of financial statements. A single set of financial accounting
7………………………….. will also save corporations' time and money since they
will no longer have to multiple sets of financial 8……………………………….. In
a word,9 ……………………..international standards, accepted in many countries,
is believed to raise the 10… of accounting throughout the world.

IV. Complete the sentences below. Check the key words if necessary.

Capital

187
When people want to ……………..or start a company, they need money, called
……………. Companies can …………….this money, called a ……………….,
from banks. The loan must be paid back with ……………..— the amount paid to
borrow the money. Capital can also come from issuing shares or………………..—
certificates representing units of ownership of a company. The people who
…………..money in shares are called………….and they ………….part of the
company. The money they provide is known as ……………. Individuals and
financial institutions, called……………, can also ………….money to companies
by buying ………………….— loans that pay interest and are repaid at a fixed
future date.

Money that is……………..— that will have to be paid to other people or businesses
is a………….. In accounting, companies' debts are usually called……………...
Long-term liabilities include bonds. Short-term liabilities include debts to suppliers,
who provide goods or services on………………— that will be paid for later.

The money that a business uses for everyday expenses is called working capital or
……………….

Revenue

All the money coming into a company during a given period is ……………..
Revenue minus the cost of sales and operating ………….., such as rent and salaries,
is known as ……………, earnings or net income. The part of its profit that a
company pays to its shareholders is a …………… Companies pay a proportion of
their profits to the government as ………………., to finance government spending.
They also ……………., or keep, some of their earnings for future use.

Financial statements
Companies give information about their financial situation in …………..…….........
The …………………….shows the company's …………………………….— the
things it owns; its liabilities — the money it owes; and its capital. The
………………..…….shows the company's revenues and expenses during a
particular period, such as three months or a year.

V.Complete the sentences with correct words.

1. Small companies often try to get bank loans when they need to . . . money.

borrow endow invest

2. We don't have sufficient . . . to build a completely new factory.

valuables supplies funds

3. Details of a company's liabilities are shown on the . . . .

188
 balance remainder ballast
4. We're going to raise more money by selling new shares to our existing . . . .

shareholders stockholders lenders creditors

5. We had to raise $50,000 . . . in order to start the business.

capital metropolis interest

We're going to pay back some of the people who lent us money, and reduce our .
...

debt pledge loan

7. I decided to buy a $10,000 . . . instead of shares, as it's probably safer.

book bond partnership

8. Another term for profit is net . . . .

income salary expenditure

9. I think this is a good investment: it pays 8% . . . .

attention interest concern

When they saw our financial statements, the bank refused to . . . us any more
money.

supply lend borrow

11. Profit is the difference between revenue and . . . .

expenses prices losses

The profit and . . . account shows if a company is receiving more money than its
spending.

gain loss deficit

If you don't like taking risks, you should only . . . in very successful
companies.

invest sell grant

14. A company's retained earnings belong to its . . . .

189
 homeowners owners inspectors
15. Anything a company uses to produce goods or services is an . . . .

asset benefit liability

16. The company made such a big profit, I expected a higher . . . .

recommendation dividend portion

17. We sold a lot more last year, so our . . . went up.

income revenue expenditure

18. We . . . our suppliers $100,000 for goods bought on credit.

have owe lend

19. Everyone who buys a share . . . part of the company.

occupies loses owns

20. Thirty per cent of our profits goes straight to the government in . . . .

rebate aid tax

E. TRANSLATION
Translate the following text into English

TƯƠNG LAI VÀ TRIỂN VỌNG MỚI CHO NGÀNH KẾ

TOÁN- KIỂM TOÁN VIỆT NAM- CƠ HỘI ĐAN XEN
THÁCH THỨC
Cơ hội đan xen thách thức

Hội Kế toán và Kiểm toán Việt Nam đã có những bước phát triển quan trọng sau 25
năm thành lập, 30 năm đổi mới và cải cách theo yêu cầu của nền kinh tế thị trường.
Những người làm nghề kế toán và kiểm toán Việt Nam vui mừng và tự hào, vì đã có
những đóng góp có hiệu quả vào thành công chung của nền kinh tế.

Nhiệm kỳ Đại hội VI (2019 - 2024) là giai đoạn có nhiều sự kiện đối với nghề kế
toán và kiểm toán, cũng là thời kỳ có nhiều kỳ vọng, nhiều thay đổi và chắc chắn là
quãng thời gian sôi động của nghề nghiệp.

Đại hội Đại biểu toàn quốc của Hội lần thứ VI, sẽ đánh dấu bước phát triển mới của
ngành nghề kế toán và kiểm toán Việt Nam. Có thể nhìn nhận về tương lai nghề
nghiệp kế toán ở Việt Nam trong bối cảnh nhiều biến động, nhiều thay đổi của

190
khoa học kỹ thuật, của các nền kinh tế và của nghề nghiệp trên thế giới, trong khu
vực.

Trước hết, trong giai đoạn sắp tới hội nhập kinh tế thế giới ngày càng sâu, càng toàn
diện, cộng đồng kinh tế ASEAN sẽ hoạt động ngày càng đa dạng và phong phú hơn.
Các nền kinh tế sẽ rộng mở hơn, nhiều hiệp định, điều ước quốc tế, cam kết quốc tế
sẽ được ký kết và triển khai. Hiệp định Đối tác toàn diện và tiến bộ xuyên Thái Bình
Dương (CPTPP), sự vận hành của Cộng đồng kinh tế ASEAN,... sẽ cho phép không
chỉ hàng hóa, dịch vụ mà cả dòng vốn đầu tư, các dòng tiền sẽ di chuyển tự do hơn.

Đại hội Kế toán thế giới lần thứ 20 (WCOA) ở Sydney, Australia, tháng 11/2018 đã
bàn nhiều về triển vọng và tương lai nghề kế toán. Tất cả đều khẳng định toàn cầu
hóa, hội nhập kinh tế là xu thế tất yếu. Nhưng thế giới này không phẳng. Sự khác
nhau về thể chế chính trị, về chính sách kinh tế giữa các châu lục, giữa các quốc gia
là đáng kể và không dễ gì tạo nên sự đồng nhất. Bản chất và chức năng của kế toán
về cơ bản vẫn là tạo lập và cung cấp hệ thống thông tin tài chính. Thể chế kinh tế và
cách thức hạch toán kế toán là công việc cần được tôn trọng của mỗi quốc gia. Việc
triển khai các chuẩn mực kế toán mang tính quốc tế hoàn toàn không dễ dàng và
không cần thiết, không nên có sự áp đặt. Điều cần thiết là các báo cáo tài chính và
việc trình bày các báo cáo tài chính phải đảm bảo mọi quốc gia hiểu và có thể đọc
được dù được lập và công bố ở bất cứ đâu trên thế giới.

Do đó, một yêu cầu mới đặt ra là các báo cáo tài chính cần được trình bày theo
những nguyên tắc, những chuẩn mực chung, thống nhất. Việc soạn thảo, công bố và
quảng bá Hệ thống Chuẩn mực quốc tế về báo cáo tài chính (International Financial
Report Standards - IFRS) cần thiết hơn cho mọi quốc gia và sẽ dần thay thế các
chuẩn mực quốc tế về kế toán (IAS). Trong bối cảnh kinh tế quốc tế mới, trong xu
thế hội nhập các nền kinh tế và toàn cầu hóa đòi hỏi các nước cần lựa chọn phương
án và xây dựng lộ trình để đưa hệ thống IFRS vào áp dụng. Việt Nam đã và đang tính
toán cho công việc này và đã có đề án áp dụng IFRS sao cho hài hòa với thông lệ và
chuẩn mực quốc tế, đồng thời phải phù hợp với thể chế và trình độ phát triển của
kinh tế, trình độ nghề nghiệp kế toán, kiểm toán của Việt Nam. Đây là một thách
thức và cũng là thời cơ để Việt Nam đổi mới toàn bộ hệ thống kế toán, kiểm toán
Việt Nam.

Thay đổi toàn diện thích ứng với xu thế 4.0

Có nhiều việc phải làm, thứ nhất là, cần xuất phát từ việc đổi mới về thể chế, ban
hành các quy định pháp lý, ban hành các chính sách kế toán cho đến đổi mới quy
trình kế toán, kiểm toán, chuẩn bị nguồn nhân lực mới cho tương lai. Hoạt động đào
tạo, phát triển nguồn nhân lực kế toán và kiểm toán trong bối cảnh hội nhập cũng cần
có sự đổi mới rất căn bản từ chương trình, nội dung và phương pháp đào tạo.

Thứ hai, cuộc Cách mạng công nghiệp 4.0 đang trong giai đoạn khởi phát trên toàn
thế giới, tác động rất mạnh vào các nền kinh tế, trong đó có nền kinh tế Việt Nam,

191
có nghề nghiệp kế toán và kiểm toán trên toàn thế giới.

Đây là giai đoạn phát triển của trí tuệ nhân tạo, của thời đại công nghệ số, của thế
giới mạng, của Internet kết nối vạn vật (IoT), kết nối mọi dịch vụ. Trong xã hội và
trong nền kinh tế đã xuất kiện những phương thức giao dịch mới, phương thức thanh
toán mới (thanh toán điện tử), những đơn vị đo lường mới. Hóa đơn điện tử đã được
thừa nhận, các chương trình xử lý và truyền tải thông tin, kỹ năng xử lý và lưu trữ
thông tin đã tạo ra những công nghệ mới, khả năng mới và yêu cầu mới. Sự xuất
hiện của điện toán đám mây, dữ liệu lớn Bigdata, Blockchain... đã thay đổi căn bản
và nâng cao năng suất hiệu quả trong quy trình tạo lập, thu thập, xử lý, tổng hợp,
truyền đạt và cung cấp thông tin, đặc biệt là thông tin kế toán, thông tin về kinh tế -
tài chính.

Tất cả những điều đó tác động rất mạnh đến toàn bộ công việc kế toán và kiểm toán,
đòi hỏi phải có sự thay đổi rất căn bản quy trình và phương pháp kế toán, kiểm toán,
đổi mới căn bản phương thức tạo lập, thu thập và xử lý thông tin, phương thức kiểm
tra, đánh giá thông tin, cách thức truyền tải, tiếp nhận, khai thác thông tin và lưu trữ
thông tin.

Thứ ba, hơn khi nào hết, năng lực và đạo đức nghề nghiệp của người làm kế toán,
kiểm toán được quan tâm và là yêu cầu rất cao. Năng lực đối với người làm kế toán
kiểm toán không chỉ dừng lại ở trình độ hiểu biết và năng lực chuyên môn nghiệp vụ
mà là những kỹ năng mới: kỹ năng quản trị thông tin, quản trị mạng, kỹ năng phân
tích đánh giá, phân tích dự báo, năng lực tư vấn, kỹ năng khai thác, sử dụng thông
tin và bảo mật thông tin, đặc biệt là thông tin kinh tế, tài chính do kế toán cung cấp.

Đạo đức nghề nghiệp của người làm kế toán, kiểm toán không chỉ là đức tính trung
thực, khách quan, là lòng yêu nghề, sự say mê nghề nghiệp mà lớn hơn là trách
nhiệm, trách nhiệm nghề nghiệp, trách nhiệm xã hội, trách nhiệm với cộng đồng và
lớn hơn nữa là lòng tự trọng, tính kỷ luật trong nghề nghiệp.
PGS.TS Đặng Văn Thanh - Chủ tịch
VAA

http://thoibaotaichinhvietnam.vn/pages/nhip-song-tai-chinh/2019-05-23/tuong-lai-
va-trien-vong-moi-cho-nganh-nghe-ke-toan-kiem-toan-viet-nam-71758.aspx

F. WRITING
Write an essay of 300 words on the opportunities and challenges facing those
working in the field of Accounting and Auditing.

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 GROUP PRESENTATION GUIDELINES

In this assignment, you are asked to select a topic related to one of the topics given in
the text book and prepare a presentation to the class. Here are some guidelines for
your presentation:

Form the maximum number of groups with six members and choose a leader for
your group.

One lesson before the presentation, the leader must send the teacher the name of the
presenters and the outline of the presentation.

Your presentation should be limited to thirty minutes (5 minutes for each presenter),
excluding five minutes for questions. Your presentation will be timed by your
instructor.

It is important that you meet as a group to discuss the issue and to rehearse and time
your oral presentation. The rehearsal is very critical to your group's grade. In the
past, groups have been taken by surprise by the contents of one or more of their
speakers or by the quality of the presentation. A full rehearsal is the best way to
polish your group's presentation.

Grading Criteria for Your Group's Ethics Presentation

Your group's presentation will be graded on the basis of organization, contents, oral
presentation skills (including adhering to the time limit). All members share the
grade equally.

Total
Category Scoring Criteria Points Score

The type of presentation is appropriate for the 5

Organization topic and
audience.

(15 points)
Information is presented in a logical 5
sequence.

Presentation appropriately cites requisite 5

number of references.

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 Introduction is attention-getting, lays out the 5
problem well, and establishes a framework for
the rest of the presentation.

Technical terms are well-defined in language 5

appropriate for the target audience.
Content
Presentation contains accurate information. 10
(45 points)
Material included is relevant to the overall 10
message/purpose.

Appropriate amount of material is prepared, 10

and points made reflect well their relative
importance.

There is an obvious conclusion summarizing 5

the presentation.

Speaker maintains good eye contact with the 5

audience and is appropriately animated (e.g.,
gestures, moving around, etc.).

Speaker uses a clear, audible voice. 5

Presentation Delivery is poised, controlled, and smooth. 5

(40 points) Good language skills and pronunciation are 5

used.

Visual aids are well prepared, informative, 5

effective, and not distracting.

Length of presentation is within the assigned 5

time limits.

Information was well communicated. 10

Score Total Points 100

194
 ACCOUNTING ESSAYS
What Are Accounting Essays?

The best way to describe an accounting essay is to say it is a short written piece
concerning the activities or practices involved in maintaining and/or checking the
integrity of financial documents and records. Although there is a common belief that
these essays are informative, knowledge enhancing and interesting, the opposite can
be the case. A lot of readers treat them contemptuously on the assumption they are
tedious and boring.

The topic for an accounting essay can be based on any one of the diverse range of
accounting functions, processes, and applications that are prevalent in modern times.
An effective essay on accounting will exploit one or some of the emerging and
contemporary topics in any of these areas. Some issues, for example, may include
management practices in accounting, international practices in this field, or the
different types of software available to support accounting functions. New
developments are an everyday occurrence in this field. Therefore, readers want to
keep abreast of what is happening.

Tips on Writing an Accounting Essay

As is true of most good essays, the introductory paragraph should define the essay’s
topic. This will prepare readers for any possible difficult words or terms that will be
used throughout the essay and it will explain the meaning of words that are obscure
or can be interpreted in more than one way. It also helps the writer take a view of the
subject and, therefore, it helps the reader to prepare for the upcoming argument(s).

As a technical field, accounting is a very professional area. An effective essay in this

field should use the correct conventions such as appropriate notations and
terminology. Consequently, it is best if the writer is a qualified accountant or, if not,
they will need to undertake a considerable amount of research on their topic before
starting to write. Additionally, the writer needs to be careful not to get the
terminology in this type of essay mixed up.

It is important an accounting essay is persuasive and that the writer shows their
mastery of the subject. The reader needs to feel convinced as they are reading. All
points should be systematically arranged with each following the other in logical
order so that they stick in the mind of the reader. Your chosen topic may be one your
readers are not very interested in but they still need to leave feeling your paper
makes one or more worthwhile points.

It is recommended that each paragraph in this type of essay should not be overly-
short or overly-long e.g. between six and ten sentences (as a minimum and
maximum respectively) is the recommended length. The primary reason for

195
dividing an essay into reasonable length paragraphs is to make it more readable. For
example, an essay with twenty (20) sentences could be deemed ineffective if it
proved too difficult to read. Likewise, an essay with one-sentence paragraphs would
not serve any useful purpose. As well as the readability factor, each individual
paragraph should introduce and explain a single concept, idea, or point. A one-
sentence paragraph would not adequately do this.

In line with the usual convention for writing an essay, an accounting essay usually
ends with a suitable conclusion. This paragraph recaps on the central thesis
statement and reminds readers of the evidence that was provided to support it. It
should also offer recommendations or recall any lessons arising out of the thesis
statement’s authenticity.

https://bestcustompapers.com/samples/Accounting

TOPICS FOR WRITING

The need for accounting software

The rapid flow of information and its value for modern accountants

The impact of 4.0 technologies on the career of Accounting and Auditing

The main problems of auditing ethics

The main drawbacks of advanced technology for the auditing sphere

The must-have skills for every accountant and auditor

The most rewarding aspects of the career as an accountant and auditor

The justification for creative accounting

The stereotype of an accountant in Vietnam

The change of accounting and auditing in the future

196
 REFERENCES
Business School – University of Bedfordshire (2008) Core Program – Level 2,
Pearson Costom Publishing

Cotesta, P., Crosling, G.and Murphy, H. (1998) Writing for Accounting Students.
Oxford: Butterworths.

Emmerson, P. (2007) Business English Handbook: Advanced, MacMillan

Frendo, E & Mahoney, S. (2007) English for Accounting – Express Series, Oxford
University Press

Johnson, C. (2000) Banking and Finance – Business English, Longman

Mackenzie, I. (1997) Financial English, Thompson, Heinle

MacKenzie, I. (2002) English for Business Studies: A Course for Business Studies
and Economics Students, Cambridge University Press

Mackenzie, I. (2008) English for the Financial Sector Learning, Cambridge

University Press.

Radice, F (1995) English for Accountancy. Londong: Macmillan Professional

English

Sneyd, M (1994) Accounting. New Jersey: Prentice Hall

Sweeney, S. (2002) Test Your Professional English Management, Penguin

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