Table of Contents

INTRODUCTION...................................................................................................................2
MAJOR FINDINGS...............................................................................................................2
Task 1.............................................................................................................................................2
1. The purpose of the accounting department of SL businesses....................................................................3
 Sole trader...............................................................................................................................................3
TASK 2...........................................................................................................................................4
2. The accounting function of SL business in the context of regulatory and ethical constraints................4
3. The context and purpose of the accounting function of SL company in satisfying organizational,
stakeholder, and social demands and expectations........................................................................................7
TASK 3..............................................................................................................................................................8
4. Accounting's role in guiding decision-making in complex operational situations to satisfy
organizational, stakeholder, and societal demands........................................................................................8

CONCLUSION.......................................................................................................................9
REFERENCE.................................................................................................................................9

INTRODUCTION
Accountants play a critical role in assisting organizations to achieve success. They serve
as a link between internal workers and outside parties such as banks and government
agencies. Accounting is a comprehensive procedure that entails identification, recording,
and communication. In the case study of SL BEAUTY CLINIC, the role of the accountant
will be looked at in multiple aspects, including finance and legal. Furthermore, it
examines the significance of accounting in assisting organizations in making decisions
that can meet the interests and aspirations of customers and shareholders while yet
adhering to environmental regulatory standards.

MAJOR FINDINGS

Task 1
1. The purpose of the accounting department of SL businesses

Accounting is extremely vital to society. It is a discipline of economics that offers data

about a corporation and its transactions to allow users to create resource allocation
decisions. When information is accurate and valuable, scarce resources are allocated
optimally; when information is less trustworthy and helpful, resource allocations are less
than ideal. Accounting systems are comprised of three major functions: identification,
measurement/recording, and disclosure/communication. Firstly, Identification is the
activity of determining economic events (transactions). Next, Measurement is the
classification and quantification of economic activities or transactions. These metrics
provide information about the profitability of a company's activities and the sustainability
of its financial position. Finally, Disclosure or communication is the procedure for
communicating accounting measurements to their intended receiver. This section
addresses concerns such as what should be reported, when, how, and to whom.
(International Accounting, 2014)

 Sole trader
According to 'Business Accounting and Finance' (Gowthorpe, C., 2021), a sole trader
operates a firm independently, which means that have no obligation to share control with
anyone and keep all their business's revenues after tax. Financial statements will be
provided generally for use by the owner or entities, with the occasional inspection by
third parties such as the government.
In the case of Sophie Le, she operates the firm using her own equity, consequently, she
needs accounting data to manage and prepare for the allocation of resources such as
labor, machinery, and income in order to make suitable business growth decisions.
Sophie Le must choose an accountant who is capable of doing the following accounting
tasks. The first one is identification which that accountants must identify all transaction
data, which includes payments for hair styling services, facial care services, cosmetics,
and spas, along with things such as recruiting, wage, housing, and investment capital,
equipment, and determining what was and was not recorded. Secondly, recording -
Accounting of SL business - Tim must categorize, report for, and analyze investments in
an accurate, suitable, and timely manner to minimize company damage and loss.
Additionally, he also has to create a clear financial system that can be simply monitored
and analyzed by recording all assets associated with SL Clinic; Classify all grooming
service prices; Calculate and predict expenditures ranging from monthly wage to
pharmaceuticals, needed solutions, hairstyle, skincare, professional nail equipment, and
so on; and compute the clinic's capital expenditures, loans, credit, and initial outlay over
one year. Last but not least, the Communication task helps accounting systems and
departments require unique and extensive research and review, particularly reports on
cost variations, supplies, compensation, and business reports. Gather information for each
clinic department and service, and determine which agency or services group receives the
greatest earnings and is worth the money invested.

TASK 2
2. The accounting function of SL business in the context of regulatory and ethical
constraints

According to Clause 1, Article 72, Chapter VI of the Vietnam Law on Environmental

Conservation, garbage has to be handled throughout the complete system of creation,
categorization, gathering, public transit, reusable, recycling, and treatment of waste, as
well as destroyed, and service charges must be paid through bidding. (Văn phòng Chính
phủ, 2020)

In this case, Sophie's beauty clinic will have to spend a substantial amount of cash to be
able to handle hazardous and possibly infected material from it's own beauty clinic, in
accordance with the aforementioned requirement. Furthermore, the clinic must be granted
an environmental certificate by a government management office. This file allows
organizations to manufacture, commercial, and service operations to release and handle
waste into the natural environment by the rules and requirements for pollution prevention
as stipulated in the law. As a consequence, the violation of combining hazardous material
and residential garbage and then disposing of it immediately at the metro's waste
treatment facility will be investigated and punished in compliance with the regulations.
The accountant at SL Beauty Clinic must adhere to environmental reporting standards.
As required by Article 114 of this Law, publish and reveal info on the kind and quantity
of hazardous wastes to be collected and handled, as well as the name and address of the
collecting facility. Tim, the accountant recruited by Sophie Le to act as an accountant for
the SL beauty clinic, however, ignored it and failed to check that this was a professional
situation that required to be noted and also a subject of preparation and backup for the
firm. Tim did not follow the law and wasn't adhering to professional ethics principles.
This will lead to significant losses for Sophie's organization.

Accountants must have the qualitative qualities and principles of accounting ethics while
creating financial statements to conduct accounting tasks efficiently. An accountant
should have the following attributes, according to the AICPA Code (1992b, 3-8):

 The public interest: members must always put the desires of consumers and
companies first.
 Integrity: Accounting must guarantee that reports are honest and professional.
 Objective and independent: Accountants' professionalism should not be affected
by love or a conflict of interest between colleagues and business.
 Due care in the performance of services: Accountants must uphold and advance
technical expertise and skills at the needed level, and they must also be adaptable
and dignified in circumstances involving professional standards. (Mintz,
S.M.,2006)

Tim did not comply with the required ethical principles of an accountant in the case study
of SL Beauty Clinic, especially regarding integrity and objective and independent
characteristics; he completely disregarded them, did not note down violations of
environmental legislation, and premeditated ended up costing which may emerge from
Sophie's patient's mistake. Tim has prepared backups again for accounting reporting
regarding environmental issues, yet he hasn't noted the expenses must spend for trash
disposal. Firstly, he failed to recognize the amount to settle for waste treatment, which
seems to have insufficient information about the clinic's finances. As a consequence, the
business and accounting departments have not been faithful and ethical in complying
with environmental actions, including no garbage sorting and no affordable payment for
garbage disposal.

The accountant also will have to document every possible cost that arises during
recording. This needs to be done to ensure that if a Department of Natural Resources and
Environment investigator examines the firm and the financial reports for any subsequent
infractions of rules, the business will be obliged to calculate and pay the expenses
incurred. Besides that, accountants must assess and present estimated cost projections in
advance, as well as provide an impartial assessment of how much the firm will have to
pay in fines and how long it will take to address the problems. About the environment.
Lastly, while explaining to users, accountants must completely provide information
regarding corporate actions that have an environmental impact as well as corrective
procedures. Tim must demonstrate completeness in all accounting reports by presenting
all of the information required to comprehend what is being provided in order to avoid
confusing the company. Furthermore, the accounting department must give reserve fund
estimations and risk management for the company to deal with the circumstances and
variations.

3. The context and purpose of the accounting function of SL company in satisfying

organizational, stakeholder, and social demands and expectations.

The primary function of the accountant's functions is to provide financial and economic
data to those who need it, as well as those connected to the organization, and the other
social stakeholders related to the business, in order to assist them in making decisions and
revealing performance. Even though the desires and expectations of the company's
internal stakeholders (founders, leaders, and workers) and external stakeholders
(governmental, shareholders, manufacturers, or financiers) support loans to clients,
accountants may only provide some data using recorded accounting information.

In the context of SL Beauty Clinic, accountants must satisfy the following demands and
expectations: The first priority is internal reporting, which includes the firm owner,
Sophie. To make good judgments and operate the firm, you must be aware of the
company's most recent monthly income, profit, investment expenses in equipment and
supplies, and risks greater yield. Workers should also be aware of the quantity of trash
generated as well as the costs to handle it, so that plans may be developed to address
environmental issues and reduce garbage in each process. Lastly, external reports
include: Suppliers must know if equipment prices are fair in order to avoid inflation or
the negative impacts of specific gadgets in order to produce greater environmental
changes. The consumer comes next; clients must be aware of and comprehend the
expenses of cosmetics, facilities, care, and services in order to minimize customer distrust
after the experience and payment.

Banks require information on the clinic's revenue, profits, and taxes in order to determine
whether the business can afford its upcoming debts and loans; the Departments of
Taxation and Natural Resources and Environment should know exactly how much the
clinic can afford in terms of wasteful treatment costs, threat reserve fund for fines, and
taxes to be fully paid. Furthermore, adjacent homes must learn whether the clinic handles
waste, how that procedure works, and how bad the contamination is.
TASK 3
4. Accounting's role in guiding decision-making in complex operational situations to
satisfy organizational, stakeholder, and societal demands

According to the author of the textbook Business Accounting and Finance (Gowthorpe,
C.,2021), there are certain differences between a sole trader and a joint venture. To begin,
a sole trader is a corporation that only one person may form and own; they are not
required to produce financial papers. When a joint venture firm is created and held by
two or more persons with the shared goal of profit, the advantage that business managers
can gain greater advantages. complementing the talents of the other spouse and the ability
to make key judgments with more ease.

In the case of Sophie Le, she surely has strong talents in the areas of hair, skin, and nail
care, and her closest friend, Jane, whom Sophie Le trusts since she presumably has good
business and financial expertise. Both have qualities that complement each other in order
to progress the company's growth and development; the immediate objective is to be
recognized by Vietnam's Hair Custody Rating. The disadvantage of this sort of business
is that withdrawing cash from a joint venture will be difficult under the law. Sophie Le is
only permitted to divest and sell them with Jane's permission, the other member. Jane, as
an investor, will have to think carefully before investing in the SL firm. The reason for
this is because when one partner of a joint venture firm does illegal conduct, the other
member must also be held liable in court. As a result, when working with Sophie and
moving the firm to the position of a joint venture, Jane must maintain a tight check on the
financial accounts through the accounting department of the business to capture any
potential hazards. hidden. In this scenario, the accountant's job at SL Corporation in
supplying information for corporate decision-making is both an opportunity and a
challenge. Tim, the SL firm's accountant, is in charge of calculating the profit of each
associated party and the overall profit to be split among members, as well as the
compensation for all SL business personnel. The next step is to ensure that the SL salon
is always clean, honest, and free of (legal and ethical problems). and pay all taxes to the
Departments of Revenue and Natural Resources and Environment to avoid being
punished for little issues. Lastly, present documentation confirming the company's
financial capability in terms of debts and assets in order to meet ZTT bank standards.

CONCLUSION
Finally, the aim of accounting functions has been meticulously and properly described in
this article. Furthermore, it analyses and evaluates the importance of accounting for
various individuals who use accounting data involved in the firm. The accounting
function's aim in this practical example of Sophie Le beauty clinic comprises identifying,
documenting, and conveying financial assistance. Sophie Le, a lone trader who operates
the firm independently, understands how other departments work and controls in the most
effective manner. Moreover, accounting systems have a primary job of recording and
calculating risk charges from external effects such as the environment, fines from
violations of government rules and regulations, and reporting to users in order to avoid
deceiving information. Furthermore, in order to prevent fraudulent and unlawful activities
associated to businesses, accountants would have to have qualitative features and ethical
accounting standards in order to fulfill the accounting duties most efficiently.
REFERENCE

 Choi, F.D.S., Frost, C.A. and Meek, G.K. (2014) International Accounting.
Harlow, Oklahoma: Pearson.
 Gowthorpe, C. (2021) Business Accounting and Finance. Australia,
Hampshire: Cengage.
 Mintz, S.M. (2006) “Accounting ethics education: Integrating reflective
learning and virtue ethics,” Journal of Accounting Education, 24(2-3), pp. 97–
117. Available at: https://doi.org/10.1016/j.jaccedu.2006.07.004.
 Văn Phòng Chính Phủ. (2020) Luật SỐ 72/2020/QH14 Của quốc hội: Luật
Bảo vệ môi Trường, Luật Bảo Vệ Môi Trường. Available at:
https://vanban.chinhphu.vn/?
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1, 2023).
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Kiểm Toán Nội BỘ, https://thuvienphapluat.vn/. Available at:
https://thuvienphapluat.vn/chinh-sach-phap-luat-moi/vn/thoi-su-phap-luat/
chinh-sach-moi/34220/05-nguyen-tac-dao-duc-nghe-nghiep-cua-kiem-toan-
noi-bo (Accessed: April 1, 2023).