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INTRODUCTION
1. The necessary of this research
Implementing the accounting system is one of the important management
organization contents in enterprises. Organizing accounting system in
accordance with the characteristics of business operations, firm size and
management requirements. Implementing the accounting system of the firms
is an important activity for accounting to provide useful information to those
interested in and out of the unit. In fact, the organization of accounting system
of enterprises in general and in pharmaceutical enterprises in the North of
Vietnam in particular has many limitations in organizing the system of
documents, accounts, and accounting books, accounting inspection. Moreover,
the recording of the arising data is not logical. The accounting report has not
fully met the information requirements on debt, inventory, etc, … and has not
really paid attention to management accounting in which the recognition and
measurement of accounting are often based on the regulations of tax
administration. There is no preparation of necessary conditions for the
application of financial reporting standards according to Decision No. 345 /
QDBTC dated March 16, 2020 in these firms.
The Implementing the accounting system in enterprises in general and in
pharmaceutical manufacturing enterprises in the North of Vietnam in particular
needs changing when the accounting jobs are all being applied information
technology for data collection, recording, accounting reports, etc.
Stemming from the urgency of the problem mentioned above, as well as
the practical significance of organizing the accounting system and the financial
management of pharmaceutical manufacturing enterprises in the market
economy which are reasons why the author chose the thesis with the topic
“Implementing the accounting system in Pharmaceutical manufacturing
enterprises in the North of Vietnam" for her research.
2. Overview of research related to the topic
Through an overview research process of the contents related to the
thesis issues, the author found the studies which have been published before
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about the organization and implementation of the accounting system in
enterprises have following main characteristics:
The authors studied the organization and implementation of the
accounting in enterprises of production, trade, importexport, construction, …
with research gaps in branches, enterprises, regions or nationwide areas.
The works studied various kinds of objects such as holding companies
subsidiary companies, economic groups, jointstock companies, small and
medium enterprises with their professions, etc.
The study contents were diversified: the organization and implementation
of the accounting in general (including financial accounting and management
accounting); the accounting organization in terms of information technology
application; the accounting organization of management; the accounting
organization of information management system. There have been studies of the
accounting organization in terms of information technology application;
however, these ones have not kept up with the rapid changes of technology
science, especially in the technological revolution 4.0.
The approach to the content of the accounting organization is varied
including the approach of the accounting procedure, the information accounting
function or work stages.
Research gaps and viewpoints on the organization and implementation
of the accounting in enterprises in the thesis
On the basis of previous domestic and foreign studies, the author offered
research gaps as follows:
Firstly, the research topics on the accounting organization are mainly
approached to the accounting stages, whereas other ones are according to the
accounting information functions (collecting, processing, and providing
information). However, these topics have not been analyzed the accounting
information functions clearly in special content objects, especially the studies
above have not mentioned the environmental accounting object yet. At the same
time, the previous studies lacked the connection between theories and
theoretical accounting organization. Besides, they have not updated accounting
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policies oriented to accounting reform in recent times including the application
of IFRS standards in Vietnam.
Secondly, the previous studies have not shown the accounting organization
content clearly in the current technological revolution period while the method
of technical assistance in terms of technological revolution 4.0 has been
changing significantly compared with the traditional method in information
collection, processing, provision and storing as well, of which each has
differences.
Thirdly, the studies mainly used qualitative research methods and
quantitative ones were mainly applied in the form of descriptive statistics and
thus limited evidentiary effect.
In the fourth, there has never been a research topic before which is about
the organization and implementation of the accounting in pharmaceutical
manufacturing enterprises with specific characteristics. They include
manufacturing a variety of products, production processes requiring strict
compliance with quality standards and highly competitive products compared
with domestic and foreign businesses.
From the research gap, the author decided to choose the thesis approach to
the accounting information function including information collection,
processing, provision and methods in compliance with the current context in the
technological revolution. In process of studying factors affecting the accounting
organization, the author applied both qualitative and quantitative research
methods.
3. The research objectives and research questions
Research objectives:
The thesis is aim to systematize and clarify general theories about the
Implementing the accounting system in manufacturing enterprises. To find,
analyze, evaluate the actual situations as well as study and assess the affects of
the accounting system organization in the pharmaceutical manufacturing
enterprises in the North of Vietnam. On that basis, clearly indicate the
advantages, limitations and causes, propose solutions to improve the
organization of accounting system in these enterprises.
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Research questions:
+ What is the basic content of the organization and implementation of the
accounting system according to the accounting information function of the
enterprises during the technological revolution?
+ How do the pharmaceutical manufacturing enterprises in the North of
Vietnam organize and implement the accounting system?
+ Which factors affecting the organization and implementation of the
accounting system in the pharmaceutical manufacturing enterprises in the North
of Vietnam and the degree of influence?
+ What is the solution for completing accounting system in the
pharmaceutical manufacturing enterprises in the North of Vietnam during the
technological revolution?
4. Research statement and scope
The research statement of the thesis is the theoretical research and the current
status of the organization and implementation of the accounting system in the
pharmaceutical manufacturing enterprises of the North of Vietnam.
Scope of research thesis
+ About content: In both terms of financial accounting and management
accounting according to the information function of the accountant.
+ About space: In the pharmaceutical manufacturing enterprises of the North of
Vietnam
+ About time: In the period from 2018 to 2020.
5. New contributions of this research
New theoretical contributions
The thesis systematized and clarified some basic theoretical issues about
the organization and implementation of the accounting system in manufacturing
enterprises in relation to some background theories. Content of organization
and implementation of accounting system is aimed at providing appropriate
financial accounting information and management accounting information in
the period of application of the technology revolution. The content of financial
accounting information organization is associated with general accounting
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requirements and principles specified in International Financial Reporting
Standards (IFRS) and Vietnam Accounting Standards (VAS). The thesis makes
clearer the content of the organization and implementation of the accounting
work related to subject environmental activities.
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New conclusions on practical assessment
The dissertation carried out a survey and analysis of the current state of the
accounting system in the pharmaceutical manufacturing enterprises in the North
of Vietnam according to 4 contents: (1) Implementing of accounting
information, (2) Implementing of the control of accounting system, (3)
Implementing the infrastructures for accounting and (4) Implementing the
accounting human resources. The dissertation surveyed, evaluated and tested
the factors affecting the implementation of accounting system by reliable
research methods, combining qualitative research and quantitative research. The
research results show that enterprises carried out implementing the accounting
system according to the above four contents but thay haven’t implemeted the
accounting related to subject environmental activities. In particular, research
shows that pharmaceutical manufacturing enterprises in the North of Vietnam
have applied information technology in accounting, but the degree of
connection with the management software is limited, there is no preparation for
IFRS application in the future.
6. The structure of the research
Exclude introduction and conclusion, the structure of the research includes
4 chapters.
Chapter 1. Literature review of the organization and implementation of the accounting system in manufacturing enterprises.
Chapter 2. Research methodology of the organization and implementation of the accounting system in pharmaceutical manufacturing enterprises in the North of
Vietnam
Chapter 3. The current state of the organization and implementation of the accounting system in the pharmaceutical manufacturing enterprises of the North of Vietnam
Chapter 4. Solutions to perfecting the organization and implementation of the accounting system in the pharmaceutical manufacturing enterprises of the North of
Vietnam
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CHAPTER 1 LITERATURE REVIEW OF THE ORGANIZATION AND IMPLEMENTATION OF THE ACCOUNTING SYSTEM IN THE MANUFACTURING ENTERPRISE
1.1. Overview of the organization and implementation of the accounting system in manufacturing enterprises. Perspectives on the organization and implementation of the accounting system in manufacturing enterprises The author systematized and analyzed different perspectives on organizing accounting system in enterprises associated with the nature of accounting, thereby giving personal views on 5 characteristics of organizing accounting system. On the basis of the analysis, according to the author: "Organizing accounting system is the one of recording, processing, analyzing and providing accounting information on the basis of applying accounting methods; organizing accounting check; organizing the facilities of information technology for the accountant; organizing the accounting apparatus to suit the operating characteristics of the firms in order to provide useful information to those who use to make effective decisions to help businesses develop sustainably”.
Objective of the organization and implementation of the accounting system in
the manufacturing enterprise Organizing accounting system needs to meet the appropriate organization of recording, processing and providing information for each user of information. Organizing accounting system also needs to meet the management requirements of the firms. Besides, organizing accounting system needs to meet the specific characteristics of the operating activities of the firms. In the era of the technological revolution 4.0, when organizing accounting system needs to know how to exploit information technology to apply in the accounting system of firms.
The role of the organization and implementation of the accounting system in
the manufacturing enterprise Firstly, a scientific and reasonable accounting system organization will ensure that the accountants to perform their own roles and duties well in the firms as well as meet and satisfy economic and financial information of the firms for the subjects of interest. Secondly, good accounting system organization is the basis of effectively financial management, contributing to the successful completion of assigned tasks. Thirdly, the
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scientific accounting system organization will contribute to building a compact and effective accounting apparatus. Principles of organizing accounting system in manufacturing enterprises Organizing accounting system must be scientific, reasonable and comply with the current accounting regulations of the State; The accounting system organization must be suitable to the units' specific characteristics, conditions and circumstances; The accounting system organization needs to ensure the principle of saving and efficiency. The theories affecting the organization of the accounting system in the enterprises: Including 4 highly influential theories: Useful information theory, Business behavioral theory, Organizational structure theory, Random theory course. In each theory, the author has basic content systems, specific impacts of the theory on the content or factors affecting the organization of the accounting system in the enterprises. 1.2. Content of organizing accounting system in manufacturing enterprises. According to the identified point of view, the content of the accounting system organization in the enterprise includes: Accounting information organization, accounting inspection organization, information technology facilities and equipment organization for accounting and organization of the accounting apparatus. 1.2.1. Organization of accounting information The author assumes that accounting information organization in the firms is the process of arranging and allocating resources to collect and process accounting datas in order to provide the best information to meet the requirements of the subjects using accounting information. When organizing the accounting information, firms need to pay attention to some of the following basic issues: Build accounting policies applicable to firms Indentify requirements for accounting information: (1) The accounting provides what is possible regardless of whether the information is really necessary, useful or not. (2) Indentify information of users to analyze requirements for information that need to be collected and provided more appropriately, completely and accurately. Objective of the accounting information organization Create a big data system (Big data) capable of sharing within the scope of allowing users to serve different purposes of users including financial accounting information and administrative accounting information.
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Build a list of accounting objects: Accounting objects are assets; capital; Enterprise's production and business processes and assets which the enterprise has the right to use but not to own. The process of organizing accounting information: It is carried out in 3 phases: Organizing information collection, organizing information processing through accounting accounts and accounting books, providing and analyzing information through accounting reporting systems, using appropriate methods of information analysis. Means of implementation: Business accountants use a specialized accounting software ordered or a designed accounting software program available and can be customized to suit the production and business activities of the unit. • Organize information acquisition Accounting information in the firms includes input and output information of the accounting system. The input receiving organization includes the following activities: (1) Organize and choose to identify a list of accounting documents (2) Organize accounting documents (3) Inspect and complete accounting documents (4) Organize the rotation of documents (5) Organize the preservation, storage and cancellation of accounting documents (6) Organize other relating accounting documents • Organize information processing (1) Organize information processing through the accounting account The firms organize accounting accounts basing on the organization of accounting account systems and the organization of recording on accounting accounts. Organize account system includes: Build a list of used accounting accounts; Organize account details encrypted; Organize the application of accounting accounts in accounting operations. Organize taking notes on accounting accounts: there is a difference in performance for accounting objects (2) Organize the processing of accounting information through accounting books Select a form of accounting, build a list of accounting books, indentify the number of accounting books, build accounting book templates, build relationships between accounting books and other accounting documents, build accounting book recording rules.
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• Organize to provide and analyze accounting information (1) Organize to make accounting reports Prepare and submit financial accounting reports (hereinafter referred to as financial statements) Organize to make management accounting reports (2) Organize to analyze accounting information Organize to analyze financial accounting information Organize to analyze management accounting information 1.2.2. Organization of checking accounting system The content of checking accounting system includes: checking input data, checking data process, checking output information, checking information preservation and storage. 1.2.3. Organization of facilities for accounting Equip and buy hardware and software In accordance with the financial capacity of the enterprise as well as the characteristics of the business operations and the management organization of the firms; In accordance with the design organization of the accounting department of the enterprise's accounting apparatus; 1.2.4. Organization of the accounting apparatus Two main issues need special attention: choosing the organizational model of the accounting apparatus and the organization of accounting personnel. When organizing accounting system, firms also need to define a specific system flow; Reporting regime, information circulation between the central accounting department with the independent or dependent accounting divisions (if any) and between the accounting department and other functional parts of the enterprise. 1.3. Factors affecting the organization of the accounting system in manufacturing enterprises On the basis of the previous studies, the thesis has systematized, developed and analyzed the factors affecting the organization of the accounting system in the pharmaceutical manufacturing enterprises in the North of Vietnam. These factors include: (1) legal environment in accounting; (2) business characteristics; (3) the influence of information technology; (4) the effect on the business owner's perception of the accounting system organization; (5) influence on the capacity of accountants in the business.
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CONCLUSION OF CHAPTER 1 Chapter 1 focuses on generalizing the basic theoretical issues about the organization and implementation of accounting system in manufacturing enterprises with the concepts, objectives, roles and principles of organizing accounting system in the enterprises. Through the research, the author found that the Accounting System Organization plays a very important role in the financial management in the firms. The contents of the Accounting System Organization include: organizing the collection, processing, analyzing and providing accounting information; organizing accounting inspection; organizing facilities for accounting; organizing the accounting apparatus. Simultaneously the author systemized and analyzed the factors affecting the organization of the accounting system in manufacturing enterprises.
CHAPTER 2 RESEARCH METHODOLOGY OF THE ORGANIZATION AND IMPLEMENTATION OF THE ACCOUNTING SYSTEM IN PHARMACEUTICAL MANUFACTURING ENTERPRISES IN THE NORTH OF VIETNAM In the thesis, the author combined qualitative research and quantitative research methodology. The quanlitative research methodology was used to interview deeply and try surveying administrators and chief accountants in typical pharmaceutical enterprises in order to offer the most official and actual survey which is under the perspective of experts about the accounting organization and factors affecting the accounting organization in pharmaceutical enterprises in the North of Vietnam. Besides, the quantitive research methodology was used to evaluate factors affecting the accounting organization in pharmaceutical enterprises. Through this model, the thesis would analyze its effect to the accounting organization in these enterprises. 2.1. Qualitative research methodology The thesis uses the methodology of dialectical materialism combined with the basic principles of economic science as a basis for researching issues from theory to practice. (1) Data collection method: Data used for evaluation analysis includes both primary data and secondary data. Primary data is collected in two ways:
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+ The first way is to use the interview method to directly interview, exchange, and consult with chief accountants, accountants and business leaders. + The second method uses the survey method (distributing survey questionnaires) using the questionnaire about organizing accounting system in the pharmaceutical manufacturing enterprises in the North of Vietnam. Respondents are the accountants at these pharmaceuticals. Secondary data: the author collects information both about documents and data from the General Statistics Office; Drug Administration; financial report; final report; financial regulations; inspection report; regulations; accounting books; financial documents; ... of pharmaceutical manufacturing enterprises. (2) Data processing method: After collecting the survey questionnaires and collecting information directly through the interview questions the author uses Excel software, SPSS to classify the phenomenon into groups with common characteristics, calculate the rate, only statistics to assess the situation (3) About the number of samples to survey Statistical results 58 pharmaceutical manufacturing enterprises of the northern regions of Vietnam. The author sent questionnaires to 58 enterprises and obtained the survey information of 48 enterprises, reaching the rate of 82.75%. 2.2. Quantitative research methodology Before conducting the official survey, the postgraduated student set up a questionnaire and met directly with the leaders, chief accountants and accountants of 5 typical pharmaceutical companies to investigate and interview. Quantitative research is conducted through questionnairebased survey surveys that have been designed and adapted in qualitative research methods. From the survey data, the PhD student analyzed it through the SPSS 22.0 software. The results of quantitative analysis will be the basis to confirm the importance and the relationship between the factors affecting the accounting system organization of pharmaceutical manufacturing enterprises. 2.2.1. Design the scale The proposed research model includes 5 independent variables: (1) Legal environment of accounting, (2) Business characteristics, (3) Information technology, (4) Owner's perceptions Enterprise on Accounting Organization (5) The capacity of accountants in the enterprise and 1 dependent variable is the organization of the
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accounting system. Research to build scales based on inheritance and scale development from previous studies. Thus, the study inherits the previous research results. In addition, after conducting interviews, theoretical review, construction research, scale adjustment for this study. The postgraduated student has given an official scale of factors affecting the accounting organization of pharmaceutical manufacturing enterprises in the North of Vietnam. 2.2.2. The process of sampling, collecting and analyzing data The preliminary design phase of the Survey The direct trial interview investigation phase combined with consulting experts and managers. Official investigation phase Processing and analyzing data phase: Evaluating the reliability of the scale; Exploratory factor analysis (EFA); Multivariate regression analysis. 2.3. Research model and research hypothesis On the basis of research systems, theoretical and practical basis of the influencing factors belong to the accounting system organization, the author builds a research model of the factors that affect accounting system organization in the pharmaceutical manufacturing enterprises in Figure 2.2 is as follows:
Legal environment for accounting Characteristics of the business Information technology
The business owner's perception of the accounting work The capacity of accountants organization in the business
The organization and implementation of accounting system in pharmaceutical manufacturing enterprises
Source: The author’s construction Diagram 2.2. Research model of factors affecting the organization and implementation of accounting system in pharmaceutical manufacturing enterprises On the basis of the research model, the hypotheses about the impact of factors belonging to the accounting system of the pharmaceutical manufacturing enterprise are as follows:
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Hypothesis H1: The legal environment has a positive impact on the accounting system organization of pharmaceutical manufacturing enterprises Hypothesis H2: The specifics of the enterprises have a positive impact on the accounting system organization of the pharmaceutical manufacturing enterprise Hypothesis H3: Information technology has a positive impact on the accounting system organization of pharmaceutical manufacturing enterprises Hypothesis H4: Perception of business owners about accounting system organization has a positive impact on the accounting organization of pharmaceutical manufacturing enterprises Hypothesis H5: The capacity of the accountants in the enterprise has a positive impact on the accounting system organization of the pharmaceutical manufacturing enterprise.
CONCLUSION OF CHAPTER 2 Qualitative and quantitative research methods are applied from questionnaire design and trial investigation, processing trial investigation results, establishing official questionnaires and processing obtained results with processing tools such as Excel, Word, SPSS 22. In order to have a clear direction, the author has carefully researched the methodology in this chapter aiming at serving the results analysis. In addition, the author based on a research overview of factors affecting the accounting organization to give the model of factors affecting the accounting system in the pharmaceutical manufacturing enterprises.
CHAPTER 3 THE CURRENT STATE OF THE ORGANIZATION AND IMPLEMENTATION OF THE ACCOUNTING SYSTEM IN THE PHARMACEUTICAL MANUFACTURING ENTERPRISES OF THE NORTH OF VIETNAM
3.1. Overview of pharmaceutical manufacturing enterprises in Vietnam 3.1.1. History and development process of pharmaceutical industry in Vietnam 3.1.2. Production and business characteristics of pharmaceutical manufacturing enterprises • Characteristics of the pharmaceutical industry About production technology; About the products; About regarding the impact on the environment; About the efficiency of production and business. • Characteristics of pharmaceutical manufacturing process
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Production preparation phase; Production phase; Testing phase, finished products warehouse phase. Products of pharmaceutical manufacturing enterprises are related to human health and life, so the production process is strictly controlled, before being put into packaging, the products are tested again if they are successful in technical standards to be packed and stored finished products. • Characteristics of management organization in pharmaceutical manufacturing enterprises in the North of Vietnam. Among pharmaceutical manufacturing enterprises surveyed, there are enterprises owed by the State with charter capital 100%, joint stock companies with state capital but less than 50%, limited liability companies with two or more members with the capital contributed by individuals. Out of 48 surveyed companies, there are 14 general public ones (firms earn public utilities), in which 4 companies have been listed on the stock market of HNX, HOSE. 3.2. Situation of the accounting system organization in the pharmaceutical manufacturing enterprises in the North of Vietnam 3.2.1. Organize accounting information Accounting information organization is implemented through 3 phases: information acquisition process, information processing process and information provision process. The phases of the information organization process depend on the accounting policies that the enterprises choose and apply. The organization of the application of accounting policies in enterprises today is as follows: According to current research, there are 10 surveyed firms (accounting for 20.9%) doing the accounting system according to Circular 133/2016 / TTBTC and 38 firms (accounting for 79.1%) doing the accounting system according to Circular 200/2014/ TTBTC. All firms are applying in accordance with Vietnamese Accounting Standards (VAS). 4 firms are eligible to apply international financial reporting standards (IFRS) as prescribed in Decision 345 / QDBTC dated 16/3/2020 on approving the project to apply financial reporting standards in Vietnam in which there is no preparation of necessary conditions for applying financial reporting standards. 3.2.1.1. Organize to receive information The accounting information in the pharmaceutical enterprises of the Northern regions includes financial accounting information and administrative accounting information is obtained through accounting documents and other accounting ones
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Organize accounting vouchers
Categories Note N o Number of enterprises Ratio (%)
1 5/48 10.41 Set up lists and forms of accounting documents
39/48 48/48 81.25 100
48/48 100 Add a number of necessary criteria
2 Organize to make documents Documentation on software Electronic documents Vouchers serving economic management accounting are used together with financial accounting documents
3 Inspect and complete documents 13/48 27.1
Organize the rotation of documents 4 48/48 100
5 48/48 100 Assigning responsibility to the accountants Organize preservation, storage and destruction according to regulations The accountant is responsible for archiving Organize preservation, storage and destruction according to regulations
Organize other accounting documents in service of management information For historical information based on accounting documents, for future information collected on other accounting documents including production estimates, construction norms of costs.
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• About the construction norm organization
Rated types
Number of enterprises established 48/48 48/48 30/48 0/48 Proportion of established enterprises 100% 100% 62,5% 0%
Cost payment of raw materials Actual labor costs Main production costs Insurance costs and business administration costs • About regarding the organization of cost estimation
Type of estimate
Number of enterprises established 48/48 30/48 Proportion of established enterprises 100% 62,5%
62,5% 30/48
62,5% 30/48
62,5% 30/48
Consumption estimate Cost Estimates payment of raw materials Estimates actual labor costs Estimates Main production costs Estimates product price
3.2.1.2. Accounting information processing organization (1) Organize the processing of information through the accounting account
Organize the accounting account system
Organize the system of accounting accounts in service of financial accounting The factual survey in the pharmaceutical manufacturing enterprises of the North shows that in order to perform financial accounting, 100% of firms apply the system of accounts issued under the current accounting regime. . With environmental activities, 7 firms have paid attention to environmental issues. Companies such as Traphaco, Ha Tay pharmaceutical, Mediplantex ... have managed and treated waste in the supply chain, used recycled packaging, operated wastewater treatment systems, ... (Annual Report 2019). Interview results show that enterprises use preset accounts in their units. No firm has recorded specific details for environmental performance. Organize the system of accounting accounts in service of management accounting
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In fact, the survey shows that firms implement to process financial and economic accounting information on the same account system. The general principle of defining accounting accounts used for management accounting in pharmaceutical enterprises is: The accounting accounts are detailed by level, if the accounting account system has detailed accounts up to level 2 that reflect the financial accounting, the administrative account will detail to levels 3, 4, 5 ... to reflect specific objects according to management requirements Numbers of administrative accounts are determined by management criteria such as product groups, goods, production and business locations, ...
Organize accounting information recording through accounting accounts
Determine which accounting account to use: 100% of enterprises use a combination of main accounts and intermediate accounts to do the accounting. Information content to be recorded in an accounting account: is analyzed by each accounting object. (2) Organize the processing of accounting information through accounting books Organize accounting books to serve financial accounting information: 100% firms build general accounting books and detailed accounting books suitable to the accounting accounts used at their units. The structure, content of notes, the process of opening, recording, closing, and correcting books are in accordance with accounting regulations. Organize accounting books to serve management information: Firms do not design separate accounting books for economic management. 3.2.1.3. Organize to provide and analyze information (1) Organize to prepare accounting reports
Organize the preparation and submission of financial accounting reports Through an actual survey, 100% of pharmaceutical manufacturing enterprises in the North of Vietnam make all financial reports according to regulations. Pharmaceutical enterprises make periodic reports quarterly and annually. Organize the reporting of economic management.
Through an actual survey of 16/48 (33.3%), firms said that they have made management accounting reports, these reports are made periodically and 6/48 (12.5%) firms make reports as requested by the administrators. Enterprises using ERP resource planning software say that these softwares are capable of providing many different types of reports according to the requirement of providing financial accounting information or management accounting.
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(2) Organize analysis of accounting information Organize analysis of financial accounting information: 100% of pharmaceutical manufacturing enterprises in the North of Vietnam use the comparison method to analyze, the analysis is done by the chief accountant or the synthetic accountant. 10/48 firms, accounting for 20.8%, perform periodic financial statement analysis while 38/48 firms, accounting for 79.2%, only perform analysis if necessary. Organize analysis of economic governance information: 15/48 firms answered that they analyzed administrative economic information, firms only analyze when there is a need, but not often. 3.2.2. Organize to check the accounting system in enterprises 100% of pharmaceutical manufacturing enterprises use supporting software in accounting, so the inspection is relatively scientific and strict. In order to check (control) the quality of input data as well as the quality of output information, firms have clearly decentralized their employees to each part from the store level, to the branch level, to the firm level or corporation level. 3.2.3. Organize facilities for accounting in enterprises Regarding hardware (computers, printers, Internet systems, LANs, ...) 35/48 firms answered that the enterprises’ hardware system was very good, 13/48 firms answered that it is normal to use and meet basic job requirements. 3.2.4. Organize the accounting apparatus in enterprises • The form of accounting apparatus organization The current results of the survey in 48 pharmaceutical manufacturing enterprises showed that 42 firms (87.5%) had a centralized organizational model and 6 firms (12.5%) had the organization of the accounting apparatus is both centralized and dispersed. Of the 48 pharmaceutical manufacturing enterprises in the North, 29/48 (60%) of the firms do not hold management accounting system, mainly are smallsized enterprises. 19/48 (40%) of the firms have a management accounting system organization in which the accountants perform both financial accounting and economic management system. • Organization of labor accounting Accounting staff with university degrees account for 75.4%, college degrees account for 19.6%, intermediate degrees account for 2.5%, postgraduate degrees account for 1.5%, qualifications for those who only participate in shortterm training
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courses account for 1%. In some firms, people working as accountants have university degrees of 100%. In firms, all employees are assessed to be honest, straightforward, objective and comply with the rules and regulations of the business as well as the confidentiality of information. In terms of professional capacity, 56.2% of firms rated that among their staff, those with longterm experience handled their professional skills better than young graduates. 3.3. Situation of factors affecting the organization of accounting system in pharmaceutical manufacturing enterprises in the North of Vietnam Survey results have collected 156 surveys from accountants, managers of firms, ensuring the reliability of the research sample size. 3.3.1. Evaluate the scale The testing and evaluating the scale is carried out by the author through analyzing the reliability of the scale, using Cronbach's alpha coefficient and analyzing exploratory Factor Analysis (EFA) to check the validity of the scale, analyze exploratory factor for the dependent variable. 3.3.2 Test models and hypotheses Testing the model and the hypotheses for the results are consistent, proving that the research model of the thesis is consistent with the data set under investigation. Accounting organization = 0.009+ 0.042 legal environment + 0.257 corporate revenue + 0.098 information technology + 0.208 perception + 0.203 staff’s capacity In which: Accounting organization is the dependent variable representing the accounting organization of a pharmaceutical manufacturing enterprise. The legal environment, corporate revenue, information technology, perceptions, staff’s capacity are independent variables in the order of: (1) Legal environment of accounting, (2) characteristics of enterprises, (3) Information technology, (4) Business leader’s perception of the accounting system organization, (5) The capacity of accountants in the enterprises. 3.4. Evaluate the current state of accounting system organization in pharmaceutical manufacturing enterprises in the North of Vietnam 3.4.1. Advantages
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Regarding the accounting information organization, the firms surveyed and selected the applicable policies in accordance with Vietnamese accounting standards and generally accepted principles in Vietnam; organizing information acquisition, information processing, information provision and analysis according to a circular guiding enterprises to choose flexible application; organize accounting inspection according to the order and current regulations; to organize infrastructure 100% to apply software to accounting system; organize the accounting apparatus to choose the appropriate accounting apparatus model according to the characteristics of each firm. 3.4.2. Limitation and causes Regarding accounting information organization: The selection and application of accounting policies are still limited (typically: the setting up of provisions, environmental issues, ...). The system of collecting information and processing information is limited. Four firms that have prepared consolidated financial reports are those who are voluntary or required to apply IFRS standards since 2022, have not prepared for the application of IFRS. Regarding the inspection organization, the accounting system: There are still errors when it is not often, many firms decentralizing to use have not specified each part of the operation. Regarding the infrastructure organization: Not paying attention to investment in upgrading information technology infrastructure. Regarding the organization of the accounting apparatus: The qualifications and professional capacity are not equal, the system volume has not been controlled and the system completion level has not been assessed.
CONCLUSION OF CHAPTER 3 In the chapter 3, the author used descriptive statistics and analyzed survey result of 48 pharmaceutical manufacturing enterprises to evaluate the actual situation of the accounting organization and factor affecting it in pharmaceutical firms in the North of Vietnam. Through researching the actual situation in these firms, it was found that there are differences in the production and business processes of pharmaceutical enterprises compared to enterprises in other business sectors. The reality also shows
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the advantages, limitations and causes of the limitations in organizing accounting system in these firms as a practical basis for completed solutions.
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CHAPTER 4
SOLUTIONS TO PERFECTING THE ORGANIZATION AND
IMPLEMENTATION OF THE ACCOUNTING SYSTEM IN THE
PHARMACEUTICAL MANUFACTURING ENTERPRISES OF THE
NORTH OF VIETNAM
4.1. Development orientation of pharmaceutical enterprises
The Strategy for the development of Vietnam's pharmaceutical industry to 2020
and a vision to 2030 clearly states the objective: Provide adequate and timely quality
and reasonable prices of medicines according to the disease structure corresponding to
each period. Quality and quality goals are on top to meet users’ needs and ensure
safety and rationality.
The main tasks and solutions for implementing the strategy: Solutions to law
construction, policy mechanisms; Solution to planning; Investment solutions; Solution
to cooperation and international integration.
4.2. Principle requirements for perfecting the organization of the accounting
system in pharmaceutical enterprises in the North of Vietam
Compliance with legal regulations
In accordance with the characteristics of production and business activities of firms
Provide economic and financial information reliably and usefully
Harmoniously combine financial accounting and management one
Enhance the application of information technology in accounting system
Feasibility and efficiency
4.3. Content perfecting the organization of the accounting system in
pharmaceutical manufacturing enterprises in the North of Vietnam
4.3.1. Perfecting the accounting information organization
• Improving the organization and development of accounting policies
Accounting policies affect the increase or decrease of the profits of firms, in
addition, accounting policies affect the decision on how to organize accounting
information. 4 large firms that have prepared consolidated financial statements need to
develop clear and consistent accounting policies between the parent company and its
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subsidiaries; it is necessary to separate information among financial statements,
administrative reports and tax reports. This is very important to the provision of
accounting information. With the view that in addition to the current business policies,
the postgraduated student has proposed solutions to improve the completion of
accounting policies in firms:
Complete toward the provisioning and recognition of impairment of asset losses
Complete the recognition of costs and income associated with environmental activities
4 qualified enterprises, subject to IFRS under Decision 345 / QDBTC dated March 16,
2020, including Traphaco Joint Stock Company, Nam Ha Pharmaceutical Joint Stock
Company, Nam Joint Stock Company Pharmaceutical, Ha Tay Pharmaceutical Joint
Stock Company prepare the necessary conditions to convert and implement accounting
policies under IFRS.
• Completing the organization of collecting accounting information
Perfect the organization of using and designing voucher: Maximize the benefits
of accounting software currently used in the process of collecting vouchers. Design
information on vouchers to provide information to users.
Complete the document rotation organization: It is necessary to synchronize the
use of electronic documents between the company and its dependent units to avoid
delays, to build a process of rotation associated with each individual responsibility.
Perfect the storage and document processing: As regulated scientifically and
reasonably, easy to find and search.
Complete accounting documents for the system of norms and cost estimates: It
is necessary to synchronize and calculate accurately when building norms and cost
estimates for the production costs of each product.
• Complete accounting information organization processing
Complete the organization of information processing through accounting
accounts: Accounting correctly into the account according to the guiding circular,
opening a detailed account in accordance with the characteristics of production and
business activities and meeting the requirements of information provision. Separate
environmental costs and revenue from other sections.
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Complete the organization of information processing through accounting books:
It is necessary to strictly manage and assign personal responsibility to book keeper,
reduce the number of detailed books (if not necessary), and supplement detailed books
according to environment activities.
• Complete organization of analysis and provision of accounting information
Complete the organization of analyzing and providing financial accounting
information: It is necessary to fully establish and improve the quality of information in
financial reports; analyze indicators on financial reports, provide additional
information about environmental accounting on the financial reports.
Perfect organization of analysis and provision of management information:
Accounting reporting systems should be designed to provide information to
administrators. The analysis of management accounting has important implications for
evaluating the past and predicting the future.
4.3.2. Complete the accounting inspection organization
Perfect the organization of checking input data and processing data:
Strengthening the checking of input data, the need to decentralize access to the system
for each system stage.
Complete inspection organization to provide information: clearly define the
responsibility to check the report before providing information to the subjects receiving
the report, determine the right object to provide.
Complete the preservation and storage of information: The backup, preservation
and archiving of data are done periodically and assigned to specialized staff.
4.3.3. Complete facility organization for accounting
Propose solutions to complete the organization of facilities for accounting with
each type of firm. It is necessary to focus on investment in upgrading information
technology infrastructure for each type of firm.
For firms that have been using ERP software (6 firms)
For firms that have not used ERP but have sufficient resources and funds to convert
to ERP (8 firms)
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For small and medium firms that are currently using accounting software (34 firms),
there are not enough resources to apply ERP solutions for firms.
4.3.4. Perfect the organization of the accounting apparatus
Complete the organizational model of the accounting apparatus
For medium and large pharmaceutical firms such as Traphaco Joint Stock Company,
Ha Tay Pharmaceutical Joint Stock Company ..., organization of the accounting
apparatus is in the direction of the financial accounting department and mixed
management accounting.
For smallscale pharmaceutical enterprises with limited resources, they should apply
the economic management model in combination with financial accounting to step by
step perform economic governance in general.
Complete construction of accounting labor norms
Define the volume and composition of the accounting jobs by each type.
Calculate the time to perform each type of system.
Organize to develop accounting job descriptions
Principles of setting up job descriptions: base on the job position, clearly define the
goals for the job, specify the rights and responsibilities of each job, set the competency
standard.
Complete the organization of system performance evaluation: Base on the criteria to
measure system efficiency (KPI) for accounting.
4.4. The conditions for implementing the solutions
On the State side;
On the side of the Ministry of Health;
On the business side
CONCLUSION OF CHAPTER 4
Based on the development orientations of pharmaceutical manufacturing
enterprises in the North of Vietnam., the author has given the principles, requirements
and solutions to perfect the organization of the accounting system in these firms. The
completed content is based on the theoretical basis in chapter 1 and based on the
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characteristics and practical experience of today's firms. On the other hand, in order to
complete the content given, the author also analyzes the conditions for firms to
implement solutions.
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CONCLUSION
With the study about the organization and implementation of accounting system in pharmaceutical manufacturing enterprises in the North of Vietnam, the thesis has achieved the following results: Firstly, the thesis systematizes and clarifies some basic theoretical issues about the organization of the accounting system in manufacturing enterprises. Specifically, stating the views, objectives, roles, principles and contents of the accounting system organization; the background theories and factors affecting the organization of the accounting system in manufacturing enterprises; Content of accounting research is aimed at providing appropriate financial accounting information and management accounting information in the period of application of the technology revolution. The content of financial accounting information organization is associated with general accounting requirements and principles specified in International Financial Reporting Standards (IFRS) and Vietnam Accounting Standards (VAS). Make clearer the content of the accounting system organization for subjects including environmental activities. Secondly, the thesis has studied the current state of the accounting system in the pharmaceutical manufacturing enterprises in the North of Vietnam, surveyed, assessed and verified the factors affecting the accounting system organization to analyze strengths, limitations and causes of limitations. Thirdly, the thesis has analyzed the advantages, limitations and causes of the limitations, thereby giving solutions and recommendations to complete including (1) complete accounting information organization, (2) complete inspect accounting system, (3) complete the organization of facilities for accounting and (4) complete the organization of the accounting apparatus with the desire to contribute to improving the quality of accounting system in the pharmaceutical manufacturing enterprises in the North of Vietnam better and better. Although the thesis has achieved a certain number of results, but due to the limited time and the author’s qualifications, the thesis cannot avoid errors; therefore, we hope to receive teachers’, scientists’ , friends’ and colleagues' comments to make the thesis more perfect
