Class notes chapter 1

How to calculate points:

Attendan 10 Do not absent more than Check attendance before 10
ce % three sessions o'clock or you will be absent
Homewor 20 Do the exercises on LMS
20 multiple choice questions
ks % or directly in class
1. 4 points

20 2. 4 points
Midterm Three questions
%
3. 2 points
(super difficult and complicated
questions)
Final 50
unknown unknown
Exam %

Slide bài giảng trên LMS:

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Tiêu chí Luật Thông tư

Cấp ban Do Bộ, cơ quan ngang Bộ ban

Do Quốc hội ban hành.
hành hành.

Tính pháp Có giá trị pháp lý cao nhất Dưới Luật, có giá trị hướng dẫn
lý dưới Hiến pháp. chi tiết thực hiện Luật.

Phạm vi Áp dụng trên toàn quốc và cho Áp dụng trong phạm vi cụ thể
áp dụng mọi đối tượng. của cơ quan ban hành.
Quy trình đơn giản hơn, do Bộ
Quy trình Quy trình phức tạp, thông qua
trưởng hoặc cơ quan tương
ban hành Quốc hội.
đương ban hành.
Quy định các vấn đề lớn, tổng Hướng dẫn chi tiết cách thực
Mục đích
quát của quốc gia. hiện Luật và các nghị định.

Thông tư 200/2014/TT-BTC là một văn bản pháp luật quan trọng do Bộ Tài
chính Việt Nam ban hành vào ngày 22 tháng 12 năm 2014. Thông tư này quy
định về chế độ kế toán doanh nghiệp áp dụng cho tất cả các loại hình doanh
nghiệp thuộc mọi lĩnh vực, ngành nghề trong nền kinh tế.
Thông tư 200 yêu cầu doanh nghiệp lập các báo cáo tài chính định kỳ,
bao gồm:
 Bảng cân đối kế toán
 Báo cáo kết quả hoạt động kinh doanh
 Báo cáo lưu chuyển tiền tệ
 Thuyết minh báo cáo tài chính
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Class notes chapter 1

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Class notes chapter 1

Comparison of Financial Reporting

Standards (GAAPUS, IFRS, VAS)

GAAPUS IFRS
(Generally
(International
VAS
Accepted (Vietnam Accounting
Financial Reporting
Accounting Standards)
Standards)
Principles - U.S.)

- A set of
accounting
standards - Global standard
established by developed by the
the Financial International
Accounting Accounting - Based on both IAS
Standards Standards Board and IFRS, VAS is
Board (FASB) (IASB). issued by the
Brief in the United Vietnam Ministry
Introduction States. of Finance to
- Provides standardize
guidelines financial reporting
- Aims for
for financial in Vietnam.
harmonization
reporting and
of accounting
is mandatory
practices
for all public
globally.
companies in
the U.S.
- Used by over
140 countries,
- Primarily
Countries United
including the EU, - Mainly used in
Using Canada, Vietnam.
States.
Australia, and
others.
- Detailed - Consistency
- Adapted to local
guidelines for and
conditions in
various comparability
Vietnam.
industries. across countries.
Advantages - Higher - Easier for - Provides a
degree of multinational framework that
precision in companies to helps integrate
financial standardize into the global
reporting. reports. market.
Disadvantag - Can be - Less detailed - Less
complex and and leaves room comprehensive
es rigid, not for compared to IFRS
allowing interpretation. and GAAP.
flexibility.

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- Requires high - Requires - Slower in adoption

compliance frequent of international
costs for updates as it changes and
companies. evolves. updates.

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Class notes chapter 1

Comparison of Financial Reporting

Standards (GAAPUS, IFRS, VAS)
GAAPUS IFRS VAS Explanation
Balance Sheet Statement of Bảng Cân Đối Reports assets,
(BS) Financial Position Kế Toán liabilities, and
(SOFP) (BCTHTC) equity at a specific
point in time,
showing the
financial position of
a company.
Income Statement of Profit Báo Cáo Kết Shows revenues,
Statement or Loss & Other Quả Hoạt expenses, and
(IS) Comprehensive Động Kinh profits over a
Income (SOPL & Doanh period, indicating
OCI) (BCKQKD) the company's
financial
performance. Also
includes other
comprehensive
income under IFRS.
Cash Flow Statement of Cash Báo Cáo Lưu Provides details on
Statement Flows (SOCF) Chuyển Tiền a company's cash
(CFS) Tệ (BCLCTT) inflows and
outflows from
operating,
investing, and
financing activities
over a period.
Statement of Statement of Báo Cáo Vốn Reports changes in
Changes in Changes in Equity Chủ Sở Hữu equity
Equity (SCIE) (SOCE) (BCVCSH) components, such
as share capital and
retained earnings,
over a period.
Notes to Notes to Financial Thuyết Minh Provides
Financial Statements (Note) Báo Cáo Tài additional
Statements Chính information and
(Note) (TMBCTC) explanations for
figures in the main
financial
statements,
ensuring clarity and
transparency.

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Class notes chapter 1

CFS SOCF

BS A=L+E SOFP

SCIE OB: E + P/L – D = CBE SOCE

Income - SOPL&OCI
IS Expense
• BS: Balance Sheet
• SOFP: Statement of Financial Position

UK,EU…
• CFS: Cash Flow Statement

US
• SOCF: Statement of Cash Flows
• A = L + E: Assets = Liabilities + Equity (Basic Accounting
Equation)
• SCIE: Statement of Changes in Equity
• SOCE: Statement of Changes in Equity (IFRS equivalent)
• OB: Opening Balance
• P/L: Profit/Loss
• D: Dividends Ng Huu Linh
• CBE: Closing Balance of Equity
• IS: Income Statement
Class notes chapter 1

4 Accounting and Financial Management Functions

1. Financial Accounting (FA): 2. Managerial Accounting (MA):
 Definition: This branch of accounting focuses on  Definition: Managerial accounting involves the
preparing financial statements such as the balance generation of internal reports used by managers to
sheet, income statement, and cash flow statement for make day-to-day business decisions. It is forward-
external stakeholders (e.g., investors, regulators, looking and focused on internal control and
creditors). planning.
 Main Purpose: To provide a clear and accurate  Main Purpose: To assist in decision-making,
picture of an organization's financial performance planning, and budgeting within the organization.
and position over a specified period.  Key Activities:
 Key Activities: o Budgeting and forecasting.
o Preparation of standardized reports in o Cost analysis and determining the cost of
compliance with regulations like GAAP or IFRS. production or services.
o Ensuring transparency and reliability of o Performance evaluation and variance
financial information. analysis (comparison of planned vs. actual
 Example Outputs: Annual reports, financial disclosures. results).
 Example Outputs: Budget reports, cost-benefit
analyses, profitability reports.

3. Accounting Information Systems (AIS): 4. Auditing:

 Definition: AIS involves the use of technology and  Definition: Auditing involves the independent
information systems to collect, store, and process examination of financial statements and records to
accounting and financial data. It supports automated ensure accuracy and compliance with relevant laws
financial reporting and decision-making processes. and standards. There are two types: internal and
 Main Purpose: To ensure efficient handling of external audits.
accounting data through technology, thereby  Main Purpose: To provide assurance that financial
enhancing accuracy, security, and speed. information is accurate, reliable, and free from material
 Key Activities: misstatement.
o Designing and managing accounting databases.  Key Activities:
o Integration of technology with accounting o Internal audits focus on internal controls and
practices to streamline financial operations. organizational efficiency.
o Data analysis and ensuring data security and o External audits assess the accuracy of financial

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compliance. statements in accordance with regulatory

 Example Outputs: ERP systems (e.g., SAP, Oracle), standards (e.g., GAAP, IFRS).
accounting software (e.g., QuickBooks, Xero). o Risk assessment and compliance checks.
 Example Outputs: Audit reports, internal control
evaluations, and compliance assessments.

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  Identifying: Recognizing relevant
Class notes chapter 1
financial and non-financial data critical
to decision-making.
 Measuring: Quantifying key business
metrics such as costs, revenues, and
performance.
 Analyzing: Evaluating data to uncover
trends, variances, and business
insights.
 Interpreting: Translating analyzed
data into actionable insights for
decision-making.
Learning Objective 1-1 – Define
managerial accounting and describe its role  Communicating: Sharing relevant
in the management process. information with managers to guide

Learning Objective 1-2 - Explain

four fundamental management
processes that help organizations
attain their goals.

Directing/ Controllin Decision

Planning
Leading g Making
Setting Guiding and Monitoring Making
objectives motivating employees and evaluating informed
and to meet organizational performance choices from
determining goals by assigning against the set available
the best course tasks, managing goals to ensure alternatives,
of action to performance, and objectives are based on
achieve them. fostering team met and making analyzed data,
Involves collaboration. necessary to ensure
defining goals, adjustments if effective
forecasting deviations occur. resource
future trends, allocation and
and creating strategy
strategies. execution.

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Learning Objective 1-3 – List and describe five objectives of managerial
accounting activity.

Objectives of Managerial Accounting

Activity

 Providing information for decision making and planning.

Quản lý kế toán giúp cung cấp dữ liệu cần thiết để hỗ trợ trong
việc ra quyết định và lập kế hoạch hiệu quả cho doanh nghiệp.

 Assisting managers in directing and controlling activities.

Hỗ trợ nhà quản lý trong việc điều hành và
kiểm soát các hoạt động.

 Motivating managers and other employees towards the organization’s goals.

Thúc đẩy các nhà quản lý và nhân viên khác
hướng đến mục tiêu của tổ chức.

 Measuring the performance of subunits, activities, managers, and other

employees within the organization.
Đo lường hiệu quả của các bộ phận, hoạt động,
quản lý và nhân viên trong tổ chức.

 Assessing the organization’s competitive position and working with other

managers to ensure the organization’s long-run competitiveness in its
industry.
Đánh giá vị thế cạnh tranh của tổ chức và
hợp tác với các nhà quản lý khác để đảm bảo
sức cạnh tranh dài hạn trong ngành.

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USING MANAGERIAL ACCOUNTING tO

MONETIZE THE INTERNET (p.8)
 Facebook
 Who they are: Facebook, a social media platform with over 900 million
users.
 What the problem is: After its initial public offering (IPO) on May 18,
2012, Facebook’s shares were trading more than 50% below the $38 per
share initial offering price. Investors were concerned about how Facebook
would consistently monetize its large user base.
 What they did: In March 2013, Facebook introduced design changes to
enhance targeted content based on user "likes." Managerial accountants
analyzed the costs and benefits of these changes, leading to improved
monetization. By mid-2018, Facebook became highly profitable, with its
stock trading at five to six times the IPO price.
 Walmart
 Who they are: Walmart, a major retailer with a presence within 10 miles
of 90% of all Americans.
 What the problem is: Initially slow to adopt online sales due to
significant investment in physical stores, making it difficult to compete
with online-only retailers like Amazon.
 What they did: Leveraged its extensive store network to offer services
such as free shipping to stores and in-store pickups. This strategy utilized
existing supply chains for cost efficiency and created opportunities for
incremental in-store purchases. Additionally, Walmart provided services
and community events to attract customers. Managerial accounting tools
were used to evaluate cost efficiencies and ensure these strategies drove
increased sales and profits.
 Media Industry (News Organizations)
 Who they are: News organizations including The New York Times, Fox
News, and The Wall Street Journal.
 What the problem is: With advertisers shifting from print to online
media, news organizations struggled to monetize digital content while
maintaining editorial independence.
 What they did: Experimented with various business models such as
subscriptions, sponsored content, and allocating costs and revenues
across different channels using managerial accounting techniques.
Examples include Fox News utilizing Facebook's "Watch" platform, The
New York Times implementing diverse subscription models, and The Wall
Street Journal creating sponsored posts on LinkedIn. Despite these efforts,
no single clear profitable model has yet emerged for digital journalism.

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Learning Objective 1-4 – Explain the major differences between managerial

and financial accounting.
Managerial accounting provides internal decision-making data, while
financial accounting produces external reports following standardized
guidelines for stakeholders.

Learning Objective 1-5 – Describe the accounting and finance structure in an

organization.
4o
The accounting department handles transaction recording and financial
reporting, while the finance department manages the organization’s assets,
capital, and cash flow.
Line and Staff Positions
Line positions focus on core operations and decision-making,
while staff positions provide support and specialized expertise to assist in
achieving organizational goals.

Learning Objective 1-6 – Describe the roles of an organization’s chief financial

officer (CFO) or controller, treasurer, and internal auditor.
 The CFO or controller oversees financial operations, ensuring accurate
accounting and financial reporting.

 The treasurer manages the organization’s cash flow, investments, and

capital resources.

 The internal auditor conducts audits, ensuring compliance and

minimizing organizational risk.

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The Balanced Scorecard

The Balanced Scorecard is a strategic management tool used by organizations
to align business activities with their vision and strategy, improve internal and
external communications, and monitor organizational performance against
strategic goals. It evaluates an organization’s performance across four key
perspectives: financial, customer, internal processes, and learning and
growth. Unlike traditional performance metrics that focus solely on financial
outcomes, the balanced scorecard takes a broader approach to measure success
through both financial and non-financial indicators.
In bullet points:
 The Balanced Scorecard aligns business activities with the
organization’s vision and strategy.
 It measures performance through financial, customer, internal
process, and learning and growth perspectives.
 It combines financial and non-financial indicators for a more
comprehensive performance evaluation.
Learning Objective 1-7 – Understand and explain the value chain concept.
The value chain concept refers to the series of activities within an organization
that add value to a product or service, from its initial design to its final delivery
to the customer. It is composed of primary activities (such as inbound logistics,
operations, outbound logistics, marketing and sales, and service) and
support activities (such as procurement, technology development, HR
management, and infrastructure). By analyzing and optimizing each link in
the value chain, an organization can gain a competitive advantage and improve
efficiency.
In bullet points:
 The value chain involves all activities that add value to a product from
design to delivery.
 It consists of primary activities like logistics, operations, and support
activities like procurement and technology.
 Optimizing the value chain can improve organizational efficiency and
competitive advantage.

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Investments in capacity, Theoretical capacity,

Practical capacity
Learning Objective 1-8 - Explain how investments in capacity affect
managerial decision making.
Investments in capacity involve spending on resources that increase the
organization’s ability to produce goods or services, such as purchasing new
equipment, expanding facilities, or hiring additional staff. These decisions affect
managerial decision-making by impacting the organization's ability to meet
future demand, manage production levels, and control costs. Managers must
consider both the
short-term costs of capacity investments and the
long-term benefits such as increased production efficiency and the ability to
respond to market changes. Additionally, excess or underutilized capacity can
lead to inefficiencies, influencing managers to balance investment decisions
carefully.
In bullet points:
 Capacity investments involve spending on resources to increase
production capabilities.
 These investments impact the organization's ability to meet future
demand and control costs.
 Managers must balance short-term costs with long-term benefits like
efficiency and responsiveness to market changes.
 Excess or underutilized capacity can lead to inefficiencies, requiring
careful decision-making.

Theoretical capacity refers to the maximum output that a company could

achieve if it operated at full efficiency without any interruptions, such as
maintenance, downtime, or employee breaks. This is an ideal scenario that
assumes no delays or inefficiencies in the production process.
Practical capacity, on the other hand, represents the realistic production
capacity of a company, considering factors like maintenance, downtime,
employee breaks, and other operational interruptions. It reflects the level of
capacity a business can expect to achieve under normal working conditions.
In bullet points:
 Theoretical capacity is the maximum possible output assuming full
efficiency with no interruptions.
 Practical capacity is the realistic output considering normal
operational interruptions like maintenance and downtime.

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Cost Management Systems

Cost Management Systems are designed to help organizations monitor and

control their costs effectively. The objectives include:
 Measure the cost of resources consumed: Tracking and measuring
how much of each resource is used in the production of goods or services
to ensure accurate cost allocation.
 Identify and eliminate non-value-added costs: Recognizing costs that
do not contribute to customer value or business objectives, with the aim of
reducing or eliminating them to improve profitability.
 Determine the efficiency and effectiveness of major activities:
Analyzing key business activities to assess whether they are being
performed efficiently and delivering the desired outcomes.
 Identify and evaluate new activities that can improve
performance: Searching for new processes or technologies that can
enhance operational performance and contribute to the organization's
success.
In bullet points:
 Measure and track the cost of resources consumed.
 Identify and eliminate non-value-added costs that don’t contribute to
value.
 Evaluate the efficiency and effectiveness of major activities.
 Identify new activities that can improve performance and outcomes.

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Managerial Accounting as a Career

Learning Objective 1-9 – Discuss the professional organizations and
certifications in the field of managerial accounting.
The field of managerial accounting is supported by several professional
organizations that provide resources, networking opportunities, and
certification programs for professionals.
The main organization is the Institute of Management Accountants (IMA),
which offers the Certified Management Accountant (CMA) designation. The
CMA certification focuses on accounting and financial management skills,
including strategic planning and decision-making. Other relevant organizations
include the American Institute of Certified Public Accountants (AICPA),
which offers the Chartered Global Management Accountant (CGMA)
certification, aimed at those with both public accounting and management
expertise. These certifications help professionals demonstrate their skills and
credibility in managerial accounting.
In bullet points:
 The Institute of Management Accountants (IMA) offers the Certified
Management Accountant (CMA) certification.
 The American Institute of Certified Public Accountants (AICPA)
offers the Chartered Global Management Accountant (CGMA)
certification.
 These certifications demonstrate expertise and credibility in managerial
accounting and financial management.

 Publishes management accounting and research studies, contributing

to the knowledge and best practices in the field.
 Administers the Certified Management Accountant (CMA)
program, which is a leading certification for professionals in managerial
accounting and financial management.
 Develops standards of ethical conduct for management accountants,
ensuring high ethical practices within the profession.
This diagram highlights the importance of the IMA in shaping and supporting the
managerial accounting profession through education, certification, and ethical
standards.

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