MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE
ACADEMY OF FINANCE

PHAM THU HUYEN
FIXED ASSET ACCOUNTING IN MINERAL MINING COMPANIES
IN THE NORTHERN AREA
SUMMARY OF ECONOMIC DOCTORAL THESIS
HA NOI – 2020
MAJOR:
ACCOUNTING
CODE:
9.34.03.01
THE THESIS WAS COMPLETED AT
THE ACADEMY OF FINANCE
Examiner 1:…………………………………….
Examiner 2: ……………………………………..
Examiner 3: …………………………………….
The thesis is presented at the Thesis Council at academy level
at the Academy of Finance
At:….hour……..day……month……year………………
The thesis is available at the National Library of Vietnam and the library of the Academy of
Finance
SCIENTIFIC SUPERVISORS:
1. Assoc.Prof.Dr NGUYEN THI DONG
2. Dr. TRAN HAI LONG
INTRODUCTION
1. Urgency of the thesis topic
In the context of deepening international economic integration, the Communist Party
and the government’s policy to prioritize the development of spearhead industries has
enabled more and more mineral mining companies (mining companies, in short) to seize new
business opportunities in line with the general development rules of the economy.
Fixed assets (FA) are considered an important resource of high proportion in
companies. The usage and management of FA directly affect product and service quality,
price, competitiveness, market position and development of a company. Moreover, mineral
mining is a special physical production field so FA is indispensable to the operation and
development of mining companies. Therefore, it is vital to manage FA in mining companies
effectively. To do so, fixed asset accounting in mining companies needs to be organized in a
strict and appropriate manner in line with international standards, the government’s norms
and accounting regime, capability and conditions of mining companies, and management
requirements.
To meet management requirements and step by step strengthen operational efficiency
in mining companies, management policies (as an economic management tool at the macro
and micro levels) have been being improved. This applies for accounting policies in general
and fixed asset accounting policies in particular .
Management accounting of FA provides information which is vital and influences the
investment for upgrade and usage of FA. However, mining companies in the North have not
paid proper attention to fixed asset accounting (FAC); information collected for creating
investment plans is still unclear, inadequate and is based on estimation.
Also, after researching, the authors found out that there have been no comprehensive
studies on fixed asset accounting in mining companies.
Due to these reasons, the author chose the following topic for the doctoral thesis:
"Fixed asset accounting in mineral mining companies in the Northern area”.
2. Literature review
The author studied local and international published researches on FA, and FAC
regarding the contents of standards to identify FA; acquiring, measuring, recording,
presenting and providing FAC information in both financial and economic aspects. The
author also studied the harmony between FAC in several companies and IAS / IFRS. Based
on that, the author found out that there have been no comprehensive studies about FAC in
mining companies. Therefore, the author has drawn some issues that need further research
and development in the thesis as follows:
Firstly, previous works about the current practice of FAC in companies only provided
general studies and assessments in all types of companies or in trading companies. No study
provided an in-depth analysis of basic characteristics of FA in mining companies, especially
how typical assets of the mineral mining industry affects FAC activities, especially typical
ones, namely: mining rights, mineral exploration expenses and environmental recovery
expenses of mining companies in the Northern area.
Secondly, published scientific researches in Vietnam and the world only studies each
content of FAC, mainly from the perspective of financial accounting; there have been no
comprehensive studies on FAC from the perspective of management accounting. Therefore, the
author has continued to study and develop FAC from both aspects to improve the efficiency of
using FA in mining companies in the Northern area. Based on the viewpoint of organizing
accounting information, the author has provided an in-depth study of FAC in companies
according to the processes of accounting information which include: receiving, processing,
and providing accounting information. The author has applied that into practice to carry out
survey and study the current situation of FAC in mining companies in the Northern area
according to each identified concert in accounting processes. In addition, the author has
proposed solutions to improve FAC in line with the current situation of mining companies in
the Northern area; this helps enhance the quality of accounting information and usage and
management efficiency of FA in these companies. The thesis clarifies conditions for companies to
implement solutions.
Thirdly, previous researches mentioned theoretical and practical issues about FAC in
companies. However, FAC depends a lot on policies and approach methods of each country
in each specific period; therefore it is necessary to keep studying the theoretical framework
of FAC and the regulations of FAC in mining companies in Vietnam’s legal system. In
assessing the application of IAS/IFRS in FAC in some countries in the world, the author has
drawn experience lessons for Vietnam and recommended amendment and supplement to the
legal corridor for FAC in mining companies to meet the actual demand of Vietnam in the
context of integration and Industry 4.0.
3. Research objectives and tasks of the thesis
The overall objective of the thesis is to study the theoretical basis and current practice of
FAC in companies to improve FAC in the new conditions from the perspective of flexible
application and compliance in each industry, including the mineral mining industry. With such
overall objective, the thesis has identified the following specific tasks:
- Inherit and further clarify theoretical issues about FA and FAC according to
processes in companies, including: receiving, systemizing and processing, as well as
providing FAC information. Look into trends and experience in applying IAS/IFRS in FAC
of several countries that are similar to Vietnam in order to draw experience lessons for FAC
in Vietnamese mining companies in general and those in the Northern area in particular.
- Carry out survey and analysis of the current situation of FAC in mining companies
in the Northern area to confirm obtained results and shortcomings of FAC in these
companies as well as to point out reasons for such shortcomings.
- Propose solutions to improve FAC based on the current situation of FAC in mining
companies in the Northern area and present conditions to implement such solutions.
3. Research question:
(1).
What is the theoretical basis about FA and FAC from aspects of financial accounting
and management accounting?
(2).
What is the current trend of applying IAS/IFRS in FAC in countries nowadays?
(3).
Regarding the current situation of FAC in mining companies in the Northern area, does
it conform to legal regulations and meet information requirement of interested parties?
(4).
What is the current situation of legal requirements about FAC in Vietnam and the
demand of applying IFRS 6 in FAC in Vietnamese mining companies?
(5).
What are required solutions to improve FAC in mining companies in the Northern area to
meet the demand of business management and international integration in the future?
5. Thesis subject and scope of research
Thesis subject: The thesis has studied FAC in companies in general and in
mining companies in the Northern area in particular from both financial accounting and
management accounting aspects.
Research scope:
- In term of space: The thesis has not studied foreign mining companies that are
operating in the North of Vietnam. Companies in the research sample have independent
accounting systems and have to present FA information in separate financial statements. The
thesis has not studied information presented in the consolidated financial statement
- In terms of time: The thesis has studied the development history of the mineral mining
industry with vision until 2030. Solutions given in the thesis are in line with the industry’s
development orientation with vision until 2030. Surveyed data in companies in the research
samples are for 2015, 2016, 2017, and 2018.
- In terms of time: The thesis has studied theory and practice of FAC from both
financial accounting and management accounting aspects according to the processes of
accounting information which include receiving, processing, and providing FA information .
Such information is held by mining companies can they can use information for their business
and production purposes. The thesis does not study FA used for purposes other than business
and production such as for welfare, infrequent lease…, they are not typical in mining
companies. The thesis has focused on studying contents of accounting of tangible and
intangible fixed assets formed by ownership capital or loaned capital (excluding loans in the
form of financial lease).
6. Research methodologies
The general method is qualitative research, including:
Document research, analysis, descriptive statistics, surveys through questionnaires,
synthesis, comparison, induction, interpretation, combined with expert interviews to clarify
the theory and practice in the thesis objective. .
- To assess the current situation of FAC in mining companies in the Northern area,