1 INTRODUCTION Rationales of of thesis topic With the development of market economy, it has opened a beneficial environment of business for the enterprises Also, it is challenging the agricultural enterprises 2in general and the livestock enterprises in particular To keep it standing steadily, the price and quality of the products are always the top concerns of livestock enterprises From the competitions of the agricultural products, the livestock products from China and other ASEAN countries which are imported into Vietnam will be benefited the export-import tax preferentially 0% having great effects on the domestic animal husbandry Moreover, the cost of production of the animal products in Vietnam is higher than that of some developed nations in that field To face up with the opportunities and challenges, the livestock enterprises need to have innovations in livestocking, increasing in the productiveness, saving the cost and reducing the price of products in order to enhance the competitiveness among the domestic and international livestock enterprises The industrial enterprises of cattle with their own particularity in the production are the main material that are the food of feeding which accounts for a large proportion in total expense In addition, the feeding products which are diversified in different cattles and livestocks Possibly, they are single or dual products, or the products which are each stage of feeding process And each product has its own growth and development characteristics Moreover, information of norm, estimation, analysis and provision about production cost and product cost in terms of Financial Accounting and Administrative Accounting that are one of the key contents to enterprises in general, and in livestock enterprises in particular From these problems, it is necessary to perform well in terms of both production cost and product cost of livestock enterprises of cattle On the other hand, through the survey of the actual situation in the livestock enterprises currently, they have just focused mainly on financial accounting to serve the purposes of reporting accountin In addition, the applications of accounting norms and accounting policies in accounting performance general, and accounting of production cost and product price in particular have remained the limitations recently Vietnam, currently, with Laws of accounting and 26 principles of accounting and accounting policies which have served and intergrated with internationals However, the application of regulations of norms of international accounting needs to be selective to meet the government‟s requirements which have remained limited Biological assets and agricultural products which have collected from biological assets of many stages which have not been updated and concerned appropriately Thus, research on “Accounting of production cost and product cost in livestock enterprises in the Northern Vietnam” is a theoretical and practical requirement of accounting which is suitable with the trend of international integration Overview of the research works related to the thesis topic Up to now, there have been many both domestic and foreign works which published the problems of accounting of production cost and product cost in the aspects of theory and practice The author reviewed the excellent works based on the aspects of each follơing work: 2.1 The research works of identification and category of production cost Identifying and classifying the costs are to provide information for the administrator to make a decision is extremely important Therefore, each research work of its different fields shows its criteria to identify and categorise the certain expenditures The studies have 2 approached to identifying and classifying the expenditures in the aspects of Financial Accounting or Administrative Accounting Here are some considerable works: - In Eric John Wittenberg „s research (2007): “Michigan‟s dairy profitability and enterprise accounting on dairy farms” - In Tran Thi Du‟s research (2012), the author studied the actual situation of 52 of food processing for livestock which categorised the expenditures based on their goals and uses - In the research of Luca Cesaro and Sonia Marongiu (2008), the authors supposed that each farm had its own structure of expenditures - In Magdalena Kludacz‟s research (2013), classify expenditures as the ability to induce costs and subjects who are subject to costs - In Dang Nguyen Manh‟s research (2018), from the result of survey of 30 of enterprises of manufacturer of pottery which presented the way to c ategorise the production cost of those enterprises 2.2 The research works of building norms and estimations for expenditures - According to Birmberg et al (2006), the authors stated the approaches to research on estimaion of costs of activities which are based on three basic theoretical frameworks - In the thesis of Nguyen Quoc Thang (2011), the author considered that norms and cost estimation had important implications in enterprise administration Also, cost norms are the basis for controlling, operating and analysing the results of enterprises - The author Moolchand Raghunandan et al (2012) stated that estimation was a complex process The best results of the estimation will be achieved when there is combination of factors - In the research of Luca Cesaro and Sonia (2013) 2.3 The research works of identifying the costs for objects who are subject to the costs and calculation of the product cost 2.3.1 Study in the actual cost method In the livestock enterprises, the domestic and foreign studies have been discussed about this method Therefore, the author generalises and focuses on determining the criteria for allocation of production cost and product cos.t - According to Tahir et al (2004), the authors stated that the agricultural companies would face with changes of the scale and diversity of products - In the research of John Blaker and et al (2008), the authors presented methods of identifying the costs - In Vietnam, the studies on production costs in the enterprises mainly point out the common method is the actual cost method Initial studies on this issue are mentioned in the study of Nguyen Quoc Thai (1983); Along with that is the study of Doan Dinh Thiem (1995); Nguyen Thu Hien (2016); Pham Quang Thinh (2018); The authors stated that enterprises are applying the actual cost method, the period of calculating the prices by the months 2.3.2 Study in the method of cost- based determination (ABC) - In Kamilah Ahmad‟s research (2012), the author used the qualitative and quantitative research methods with the number of survey samples were 1.000 small and medium-sized enterprises in Malaysia - In the thesis of Dao Thuy Ha (2015), the author proposed to apply the ABC method and thought that this was a method of determining complicated costs and difficulties in the implementing process - Nguyen Thi Dieu Thu (2016) suggested the solutions to apply the ABC method - In the Ahmed E Haroun‟s writing (2015) 3 - The authors Lu, Cedric; Sridharan, V.G.; Tse, Michael S C (2016) with their work “ Implementation of Activity – Based Costing Model for a farm: An Australian Case” 2.4 Studies in the application of IAS 41 Standard and the issue of fair value in accounting of production cost and product cost - In the study of Liliana et al (2012), there were significant differences betwe en the accounting rules and regulations of Romania and IFRS - Research by Luca Cesaro and Sonia Marongiu (2013) - Another study by Hinke Janaa, Stárová Martab (2014), in this study was done by the author through a survey of questionnaires with a sample of 104 SOEs on measuring Biological Assets and agricultural products based on the IAS 41 by product cost - The article of Kamaruzzaman Muhammad (2014) - With the study of Adrienna Alys Huffman (2014), the author experienced and studied empirically in the construction of the theoretical framework of asset measurement and the linkage between measurement and the use of assets on the framework of survey samples It was 182 international companies from 33 different countries applying IAS 41 - In Vietnam, there have recently been some remarkable researchers related to this issue Namely, it is the research of Hoang Thuy Dieu Linh (2018); Nguyen Ngoc Lan (2017); Trinh Hong Hanh (2018) Thus, from those studies above, they show that the authors have systematised the basic theoretical issues of production cost and product cost and the direction of practical application for each industry, and each specific job to each topic The conclusions are drawn from the research works as follows: - In Vietnam, there have been many research works on production cost and product cost accounting, but there are are researchers for SOEs, namely in the enterprises In recent years, especially since Vietnam joined in the Trans-Pacific Partnership Agreement (TPP), there has not been a complete research project on accounting of production cost and product cost in the livestock enterprises in Northern Vietnam - Next, the previous studies have not mentioned or already mentioned but there are still many points that have not been clarified on accounting of production cost and product cost in the aspect of the administrative accounting of manufacturing enterprises in general, and industrial enterprises in particular - On the other hand, the current studies have been done in accounting of production cost and product cost associated with the actual activities of enterprises in many types of businesses and with many scales, areas and different fields of business, but representation is still low But studies that have applied this issue in industrial enterprises are still rare or, if so, just focused on the Financial Accounting perspective Therefore, it is necessary to continue researching, implementing, verifying and applying accounting of production costs and product prices in industrial enterprises to implement in practice effectively - Finally, the previous works have not studied, clarified the rationale and proposed solutions on accounting of production cost and product cost for livestock enterprises on the Financial and Admistrative Accounting perspectives with specific issues of industrial enterprises such as: Biological assets and agricultural products obtained from Biological assets for many products, cost of caring, cost of harvesting, price of livestock product, measuring and presenting information in controlling Biological Assets and agricultural products at the end of the period when preparing financial statements in the direction of applying IAS 41 international accounting standard Objectives of the research The thesis is conducted with the general objective of studying and proposing solutions to complete the accounting of production costs and product prices in livestock enterprises in Northern Vietnam In order to achieve the overall research goal, thesis needs to implement specific objectives as follows: - Systematising, analysing, clarifying and developing the basic theoretical issues of accounting of production cost and product cost in industrial enterprises under the Financial and Administrative Accounting perspectives; - Survey, study and evaluate the current status of production cost and product cost for livestock enterprises in Northern Vietnam on the Financial and Administrative Accounting perspectives Indicate advantages, limitations and causes of limitations in accounting of production cost and product cost in livestock enterprises in Northern Vietnam - Propose solutions to complete the accounting of production cost and product cost in livestock enterprises in Northern Vietnam under Financial and Administrative Accounting perspectives The questions of research process To achieve the research objectives of the thesis, the questions have been raised in the research process are as follows: - What are the basic theoretical issues about accounting of production cost and product cost in industrial enterprises? - What is the current status of accounting of production cost and product cost for livestock enterprises in Northern Vietnam now? What are the advantages and limitations and what are the reasons for these limitations? - What are the solutions to improve accounting of production cost and product cost in livestock enterprises in Northern Vietnam? Subject and scope of the research 5.1 The research subject The thesis studies the theoretical issues and the reality of accounting of production cost and product cost in livestock enterprises in Northern Vietnam 5.2 The research scope In terms of content: The thesis focuses on researching and systematising the basic theoretical issues of accounting of production cost and product cost on Financial and Administrative Accounting perspectives In order to ensure the concentration the cost content mentioned in thesis is only production cost of the enterprises does not include selling expenses, enterprise management costs (operating expenses), and operating expenses of finance, other costs and corporate income tax costs Study of accounting of production cost and product cost in the two leading-countries in livestock breeding, theoretical and practical experience of accounting of production cost and product cost is such as the US and France to draw lessons for the implementation process in industrial enterprises of cattle in Vietnam The project limited research on accounting of production cost and product cost in livestock enterprises in Northern Vietnam with livestock product if considering the scope of the IAS 41 as “products obtained from biological assets for high products of period “and is” Agricultural Products at time of harvest” In terms of research space: The author chose the scope of livestock industrial enterprises in the provinces of Northern Vietnam with 31 of cattle enterprises according to the scale of breeding The surveyed industrial enterprises were typically pig raising and dairy farming In terms of the study time: Researching the current status of accounting of production cost and product cost of livestock enterprises from 2012 to 2018 Data collected from vouchers, accounting books and financial statements of livestock enterprises from January, ST 2016 to December, 31 st 2018 5 Research methodology 6.1 The process of research The research process is designed and described in steps according to GT.2 diagram 6.2 The method of data collection 6.2.1 Primary data collection In order to collect primary data, the author uses a combination of three main methods: survey, interview, and observation Investigation method: this data is collected by the author from the industrial enterprises of different types, including limited liability companies, joint stock companies, private enterprises with typical farms in areas with domestic livestock activities of cattle is the pig breeding, dairy breeding The author selected 31 of industrial enterprises (Appendix 1A) The questionnaires were sent to a group of two subjects with a total of 235 votes sent In which (i) the group of people who manages the functional departments and technical heads of the livestock farms with the number of survey sent out was 93 survey forms (Appendix 1B); (ii) livestock enterprises‟ target group for accountants were 142 questionnaires (Appendix 1C) Interview method: In order to find out more in-depth and specific information about enterprises, the author conducted a direct meeting to interview manager with the number of interviewed people of 18 people to investigate the information requirements to serve the management and support the decision of the leaders, the role of accounting of production cost and product cost in livestock enterprises in Northern Vietnam (Appendix 1D) Observation method: During the study of the topic along with the interview, the author observed the actual process of livestock production of livestock enterprises in Northern Vietnam 6.2.2 Secondary data collection Secondary data sources were collected from Website of cattle enterprises, Vietnam Livestock Association, Vietnam Veterinary Association, Ministry of Agricultural and Rural Development; Summary of previous studies by domestic and foreign authors; Refer to the analysis of experts; Summary of statistical yearbook data; Research works, articl es on books, newspapers, magazines on Financial Accounting, Administrative Accounting, Administrative Accounting of cost textbooks of many authors 6.3 The analysis method After collecting the data, the author analysed the data, using methods: synthesis comparison, economic analysis 6.4 Method of presenting data The author presents qualitative and quantitative data mainly on two forms, tables and diagrams Research results and contributions The thesis presented the research results and the contributions of the thesis in theory and practice Conclusion In addition to the introduction and conclusion, the content of the thesis consists of chapters: Chapter 1: The basic theoretical issues of accounting production cost and product cost in livestock enterprises Chapter 2: the actual accounting of accounting of production cost and product cost in livestock enterprises in Northern Vietnam Chapter 3: Solutions to improve accounting of production cost and product cost in livestock enterprises in Northern Vietnam 6 CHAPTER 1: THE BASIC THEORETICAL ISSUES OF ACCOUNTING OF PRODUCTION COST AND PRODUCT COST IN LIVESTOCK ENTERPRISES Characteristics of livestock activities affecting accounting of production cost and product cost in industrial enterprises 1.1.1 Characteristics of livestock products affecting accounting of production cost and product cost in industrial enterprises First of all, the author mentioned some related and specific terms of industrial enterprises such as: animal husbandry, livestock, livestock types of livestock enterprises, animal husbandry products The main characteristics of livestock products are: Firstly, livestock products are very diverse Secondly, livestock products are seasonal Thirdly, livestock products are able to reproduce naturally Fourthly, livestock products are living organisms 1.1.2 Characteristics of the livestock process affecting accounting of production cost and product cost in industrial enterprises In industrial enterprises with the basic characteristics of the breeding process affecting the accounting of production cost and product cost is synthesised by the author including: Forms of production organisation, production time of livestock products, factors of natural conditions, weather, epidemics, main breeding methods in industr ial enterprises, production management organisation in industrial enterprises To sum up, on the basis of the characteristics of livestock products , especially livestock products in industrial enterprises and methods of animal husbandry, production organisation in livestock have a direct impact on accounting of production cost and product cost With the analysed contents, it is the basis for the next research of the author in the topic General problems of production cost and product cost in industrial enterprises 1.2.1 Identify and classify production cost 1.2.1.1 Definition of production cost The author summarised views on production cost , then it is likely to draw the author‟s perspectives on production cost Thus, there are many concepts of production cost, but from the author‟s point of view, it is approaching the concept of production costs: production cost is the expression of money of the entire living labor and physical labor and cost Other necessities that businesses have spent to carry the production process in a certain period 1.2.1.2 Classification of production cost In industrial enterprises in general and livestock enterprises in particular, production cost of enterprises include many type of costs Depending on management requirements and cost characteristics in the enterprises, it is possible to classify costs in different way,each classification method brings specific effects for management and accounting on economic or economic aspects 1.2.2 Product price and product price classification 1.2.2.1 Defintion of product cost The author summarised the views on production cost The majority points of view are favourable on certain angles, which are fundamental in terms of the theoretical basis of product cost in Vietnam 7 To sum up, there are many opinions and approaches on production value, but the author agreed with the price approach: Product cost is the monetary expression of production cost calculated for a volume of products or services certain to be completed 1.2.2.2 Classify product cost In addition to the standard of production cost classification as other common manufacturing enterprises, industrial enterprises can classify production cost according to a number of different criteria: Classification of production cost based on data and timing of calculation of costs, classification by the scope cost in price, classificaition by the purposes of international economics, classification by the orientation of applying the IAS 41 Each industrial enterprise depends on product characteristics, breeding process, type of animal and information requirements for governance Therefore, industrial enterprises need to choose for themselves the appropriate costing system Accounting of production cost in livestock enterprises in terms of Financial Accounting 1.3.1 Basis, types, principles, dominant accounting standards of accounting of production cost and product cost of livestock enterprises 1.3.1.1 Basis of accounting There are two basic accounting bases: cash accounting and accrual accounting Within the scope of the thesis, cumulative accounting research is the basis for recognising arising economic operations affecting production cost and product cost factors of livestock enterprises 1.3.1.2 Types of accounting Accounting theories have been developed and applied in practice and accounting has really become a science with basic accounting types such as static accounting, dynamic accounting and current accounting Within the scope of the thesis, the author only mentions dynamic accounting which directly affects the accounting of production cost and the quality assurance of livestock enterprises 1.3.1.3 Principles of accounting Industrial enterprises are based on accruals and dynamic accounting models, generating many accounting, accounting principles to accounting of production cost and product cost of livestock enterprises such as: Principles of original prices, prudential principles, principles of materiability, principles of suitability 1.3.1.4 Accounting Standards For VAS, the main standards governing the accounting of production cost and product cost of livestock enterprises can be mentioned as VAS 01, VAS 02 For IAS, following the orientation of applying international accounting standards Combined from the relevant documents standards directly control the accounting of production cost, the quality assurance of livestock enterprises is the IAS 41A “Agriculture” The contents of accounting of production cost and product cost under the Financial Accoungting perspective of enterprises in general, and livestock enterprises in particular include the following contents: + Receiving information of production cost and product cost of livestock enterprises through accounting vouchers + Processing and systematising information of production cost and product cost of livestock enterprises through accounts and accounting book system + Providing information of production cost and product cost of livestock enterprises through the financial statement system 1.3.2 Collecting information of production cost and product cost through accounting vouchers Based on accounting vouchers to collect information on costs and prices of livestock enterprises as a basis for accounting books The contents include: Organise the construction of a system of accounting vouchers, receive, check, complete, rotate and preserve the documents 8 1.3.3 Processing and systematising information through accounts and accounting books 1.3.3.1 Processing and systematising information through accounts Organisation of the accounting account system: For the stock of information Technology, Research and Development, the expenditures of production cost and product cost Since then, the content and process of accounting of production cost and product cost in livestock enterprises will be generalised through accounting diagrams in the accounting of inventory according to the methods of perpetual inventory count and periodic inventory count 1.3.3.2 Processing and systematising information through accounting books In industrial enterprises in keeping a written record of production cost related to operations Product cost is designed to include general and detailed books In addition to the prescribed accounting books, it is possible to base on the characteristics of the livestock products, require managers to open the detailed books to suit the units 1.3.4 Presentating of information of accounting of production cost and product cost on financial statements Information on production cost and product cost shown on the financial statements includes two basic indicators: the cost of goods sold index on the report of business results and the target of unfinished business production cost on the balance sheet or for with enterprises complying with Circular 133/2016/TT-BTC is a report on the situation of assets 1.4 Accounting of production cost and product cost in livestock enterprises in terms of Administrative Accounting 1.4.1 Develop norms and estimations of production cost and product cost in livestock enterprises 1.4.1.1System of cost norms Building norms can be done with one or more combinations of methods to obtain the best results With the commonly used methods is the method of statistic al experience, economic technical methods, and direct testing methods Livestock enterprises that implement to build the cost norms including: Norms for of labor protection cost, norms for construction investment cost, and norms for production cost 1.4.1.2Estimation system of production cost Estimations are also considered as calculations, expected to co-ordinate the objectives to be achieved with the ability to mobilise resourcing the process of business production according to the quantity and value targets at the most time in the future The estimation system of livestock enterprises is mentioned only focusing on the estimation of the stock of information technology, the estimation of the construction investment and estimation of the production cost in the livestock enterprises of the agricultural sector 1.4.2 Method of determining cost for objects who are subject to expenses 1.4.2.1Objects of cost accumulation Objects of cost accumulation of livestock enterprises can be as follows: groups, animal farms, orders, processing contracts, and products 1.4.2.2Method of cost accumulation When collecting production cost and product cost, the enterprises should determine and select appropriately costing methods With the method of collection can be used is as the direct collection method and indirect application method 1.4.3 Product cost 1.4.3.1Cost object Cost object of livestock enterprises is a type of livestock products that livestock enterprises have completed the breeding process, which requires calculating the total cost and unit price 9 1.4.3.2Time and period of product cost The period of calculating the price of livestock products is stipulated uniformly in the livestock enterprises which are the finished products in any year, then calculate the cost of products of that year Therefore, the expenses paid for this year, but after the new products are collected, all expenses of this year are considered as unfinished products at the end of the period, moving to the next period 1.4.3.3Method of calculating product cost In livestock enterprises, when determining production cost for each type of livestock, the method of calculation of cost is applied as follows: Calculating production cost for cattle for meat ( growing, and raising fat); production cost calculation of breeding animals; calculating production cost of domestic animal through the orders; calculate cost by the ABC method 1.4.4 Providing, using and analysing information of production cost and product cost serving for management in livestock enterprises 1.4.4.1Providing information of production cost and product cost through administrative reporting system Administrative report means that it reports specifically, reflecting criteria for the production costs and product prices clearly according to various criteria in order to provide timely and sufficient information management requirements of enterprises 1.4.4.2 Using information of production cost and product cost to serve business administration Information about production cost and product cost is provided on the reports of livestock enterprises From accurate, complete and timely information, it helps the managers make timely, appropriate and effective decisions if the information provided is accurate Information about production cost and product cost is used from information on production reports, product cost report, according to cost items, reporting cost based on variable fee 1.4.4.3 Analysis of information of production cost and product cost for corporate governance The methods can be used in the process of cost information analysis such as exclusion, and comparison To consider the fluctuations between the total actual cost incurred and the total standard cost applied through the total volatility indicator 1.5 Accounting of production cost and product cost of advanced countries and lessons for Vietnam 1.5.1 Accounting of production cost and product cost in some advanced countries 1.5.1.1Accounting of production cost and product cost according to the US accounting system In terms of accounting documents, Financial and Administrative Accounting documents, all of them use a single accounting voucher system In addition, there is a separate accounting voucher organisation to collect detailed information and forecast information In terms of accounting accounts, the system of general accounting accounts is used for the purposes of Financial Accounting and analytical accounts for the purposes of Administrative Accounting In addition, the US does not build a system of accounting accounts of production cost uniformly for enterprises Accounting book: Financial accounting uses the system of accounts and general accounting books, international payment system and account details of production cost in accordance with management requirements Accounting report: Each accounting department has the function of receiving and providing accounting information both in general and detailed form according to management requirements The Administrative Accounting reports provide information 10 for internal enterprises Also, the financial reporting system provides information for external businesses 1.5.1.2Accounting of costs and prices according to the French accounting system France is a country that applies a static accounting model and the design Financial Accounting and Administrative Accounting systems are separate Accounting vouchers are used, apart from the general accounting voucher system of financial accounting for international economic development, there are separate accounting vouches for internal management of enterprises System of accounting accounts built separately for financial accounting and international economics System of financial accounting accounts prescribed and required for enterprises.And the system of administrative accounting accounts depends on the management requirements of the enterprises to open and decentralise the account details About the system of accounting books, there is an independecne between financial accounting and international economics In particular, administrative accounting builds a separate accounting system to serve the recording of international accounting operations In terms of the accounting reporting system: In addition to the reports prepared under financial accounting regulations In addition, for production cost and product cost accountants, International economic relations have setup separate report forms such as report on production estimates, profit and loss reports for each division At the same time, the planned targets and estimates are also concerned 1.5.2 Lessons learned from accounting of production cost and product cost for livestock enterprises in Northern Vietnam Financial accounting is an official accounting, regulatory, and economic accounting plays an important role in implementing the function of managing, controlling, estimating and providing information for management decisions Therefore, in the context of Vietnam‟s accounting system integration, it is build on the view of respecting international practices and standards and applying it to each stage of economic development in Vietnam CONCLUSION OF CHAPTER In Chapter 1, the thesis systematises, analyses, classifies and develops theoretical issues about accounting of production cost and training practice in livestock enterprises In particular, the thesis has clasified the characteristics of animal husbandry that affect accounting of production cost and product price, identify and classify accounting production cost and product price in the aspects of Financial Accounting and Administrative Accounting, study experience of production cost and product price accounting from some countries such as the US and France to draw lessons on accounting of production cost and product price for livestock enterprises in Vietnam The content of Chapter is an very important theoretical basis for the research and assessment of the current status of accounting of production cost and product price in livestock enterprises in Northern Vietnam Also, it proposes some solutions to complete in the following chapters of the thesis 11 CHAPTER THE CURRENT SITUATION OF ACCOUNTING OF PRODUCTION COST AND PRODUCT COST IN THE ENTERPRISES OF LIVESTOCK BREEDING IN NORTHERN VIETNAM 2.1 Overview of livestock businesses in Northern Vietnam 2.1.1 General introduction to livestock industry and livestock enterprises in Northern Vietnam Animal husbandry is a key industry in the livestock industry Up to now, livestock production has developed rapidly and strongly in terms of husbandry scale as well as the number of households involved in animal husbandry According to statistics from October 2018, in raising cattle with livestock s uch as dairy cows and pigs, the number of cows in the whole country was 294,382 (of which Northern Vietnam was 60,711, accounting for 20,6%, compared to the whole country.) As for pig raising, the number of pigs of the whole country was 49,743,746 (of whic h Northern Vietnam was 23,848,050, accounting for 47.95% of the whole country) Since then, it has been shown that animal husbandry in Northern Vietnam plays a key role in the livestock industry of our country Specific figures are described in the chart(2 1) Diagram 2.1: Statistics of cattle ranching by 10/2018 75.628 98.173 23.848.050 9.351.315 60.711 6.380.536 3.391.997 Pork (Animal) ern Vi etn am (1) o rt R he e d R + (2 ) rn M i No ve idl rD rth an elt ds Ce a an ntr d al M an dC en Ce tra n tr al Hi gh l a nd M s So ek uth on gR eas ive t rD elt a N ern No rth PRODUCTIVITY OF MILK COW 14.496.735 9.815.673 6.307.490 N Milk cow (Animal) 25.000.000 20.000.000 15.000.000 10.000.000 5.000.000 - No rth 35.979 32.026 28.685 23.891 Vi etn am o rt (1) R he +( e d r nM 2) R iv No rth idlan er D elt Ce ds a an ntr d al an d Ce Ce n tr n tr al Hi gh lan M d ek o n So u s th gR ive eas t rD elt a 100.000 80.000 60.000 40.000 20.000 - PRODUCTIVITY OF PORK (Source: General Statistics Office & summary’s authors) 2.1.2 Organisational characteristics of animal husbandry, product, breeding process of livestock enterprises in Northern Vietnam 2.1.2.1 Organisational characteristics of breeding activities Animal husbandry in terms of how livestock is organised includes two basic types: natural breeding and industrial breeding In terms of the form of husbandry, the livestock system in Vietnam is the main types of animal husbandry currently as follows: the State-owned breeding enterprises, livestock farms, cattle-breeding households 2.1.2.2 Characteristics of products and methods of animal husbandry + Product features: With the main products in animal husbandry mentioned by the author in the thesis are livestock products, meat products (raising and fattening), fresh milk products + Livestock raising method: Livestock products can be formed through one of two methods of raising animals: (i) self-consumption of breeding; (ii) breeding by the the orders; (iii) outscouring livestock 12 2.1.2.3 Characteristics of cattle breeding process + The process of raising livestock is raising pigs + The process of raising cattle is dairy farming 2.1.3 Characteristics of management organisationi in livestock enterprises of cattle in Northern Vietnam + Type of enterprises surveyed + Administrator‟s position + The age of the administrator + Level of training of administrator + Building a management of organisation model 2.1.4 Characterisitics of accounting in livestock enterprises of cattle in Northern Vietnam 2.1.4.1 Characteristics of organisation of accounting apparatus in livestock enterprises of cattle in Northern Vietnam When studying the situation in livestock enterprises in Northern Vietnam, most enterprises used accounting models combining between Finacial Accounting and Administrative Accounting and organised the apparatus in the concentrated form 2.1.4.2 Characteristics of accounting policies applied in the enterprises @Accounting regime applied in the businesses According to the author‟s survey, most livestock enterprises in Northern Vietnam applied accounting regime according to Circular 200/2014/TT-BTC with 22/31 (accounting for 71%) of livestock enterprises in Northern Vietnam, the remaining 9/31 (accounting for 29%) The livestock enterprises implemented the accounting regime issued under Circular 133/2016/ TT-BTC @Form of accounting applied in the enterprises According to survey data, there are 27/31 (accounting for 87.1%) enterprises applying the general journal form, 1/31 (accounting for 3.2%) of enterprises recording in the form of vouchers logs, having 3/31 (accounting for 9.7%) recorded in the form of book vouchers, other forms did not apply 2.2 The current situation of accounting of production cost and product cost in livestock enterprises in Northern Vietnam 2.2.1 Classification of production cost in livestock enterprises in the North Through survey results in livestock enterprises in Northern Vietnam, there were 31/31 (accounting for 100%) of livestock enterprises that applied the cost classification according to the content, the economic nature of costs and the cost items to recover service and information for Financial Accounting Besides, through survey of livestock enterprises of cattle with 8/31 enterprises (accounting for 25.8%) have implemented cost classification according to the behavior of costs, including 6/31 large -scale enterprises and 2/31 small and medium-sized enterprises following this classification 2.2.2.The current situation of accounting of production cost and product cost in cattle industrial enterprises in Northern Vietnam on the perspective of financial accounting 2.2.2.1 The current situation of applying accounting voucher system to receive information In accounting of production cost and product cost of livestock, to get accurate, complete, timely and objective information, it is necessary to have accounting vouchers Currently, livestock enterprises of cattle in Northern Vietnam have belonged to the author who surveyed the majority of using the accounting voucher system under the guidance of Vietnamese accounting regime in Circular 200/2014/TT-BTC dated September 30, 2016 was 8/31 (accounting for 25.8%) of livestock enterprises There is 1/31 livestock enterprises have 13 not been updated timely the design of the accounting software, so when printing current accounting documents, the accounting regime of Decision 48/2006/ QD- BTC is still followed Simultaneously, through survey of the situation of livestock enterprises in Northern Vietnam, the majority of livestock enterprises mainly build accounting vouchers systems under the guidance of the accounting regime, only 6/31 (accounting for 19.4%) Livestock enterprises have to design and supplement their own accounting vouchers forms in accordance with the characteristics of livestock enterprises 2.2.2.2 The current situation of processing, systematising and providing information on production cost and product cost of livestock enterprises in Northern Vietnam (a) System of accounting accounts According to the author‟s survey, there was 22/31 (accounting for 71%) of enterprises applying the accounting account system in accordance with the provisions of Circular 200/2014/ TT-BTC issued on December 22 2014 and having 9/31 (accounting for 29 %) Enterprises which applied accounting system according to the provisions of Circular 133/2016/TT-BTC issued on September 30, 2017 At the same time, each livestock enterprises based on the specific characteristics of each enterprise, livestock scale, type of livestock products for accountants to open production cost and product cost accounts Also, there were differences among enterprises in building detailed accounts (b) Processing and systematising information of production cost and product cost Process of accounting the arising economic operations of the collection of production cost and the calculation of livestock value in the livestock enterprises to carry out the accounting of inventories according to the EZ method and calculate VAT according to the deduction method is 30/31 enterprises (accounting for 96,8%) Through the survey, such as : Thai Viet Company Limited; Phu Thai Agricultural Products Development Co, Thai Nguyen North Song General Import-Export Co., Ltd The remaining industrial enterprises carry out according of inventories according to the method of accounting of 1/31 (accounting for 3.2%) and paying VAT by the deduction method Namely, the collection of production cost and product price of livestock enterprises is as follows: Accounting for production cost of Information Technology, Research and Development, Production and Distribution, Production cost for the whole enterprise, accounting for the provision for devaluation of livestock products in livestock enterprises cattle in Northern Vietnam At the same time, through the survey of situation of livestock enterprises in Northern Vietnam, the majority of livestock enterprises mainly build accounting vouchers system under the guidance of the accounting regime, only 6/31 (accounting for 19.4%) Livestock enterprises have to design and supplement their own accounting voucher form in accordance with the characteristics of livestock enterprises 2.2.2.2 Current situation of processing, systematising and providing information on production cost and product cost (a) System of accounting accounts According to the author‟s survey, there are 22/31 (accounting for 71%) of enterprises applying the accounting account system in accordance with the provisions of Circular 200/2014/TT-BTC issued on December 22, 2014 and having 9/13 (accounting 29%) Enterprises apply accounting system according to the provisions of Circular 133/2016/ TT-BTC issued on September 30, 2016 At the same time, each livestock enterprises based on the specific characteristics of each enterprise, livestock scale, type of livestock products for accountants to open production cost and product price accounts And, there are also differences among enterprises in building detailed accounts 14 2.2.3 Current situation of accounting of production cost and product cost in livestock enterprises in Northern Vietnam on the perspective of management accounting 2.2.3.1 Current situation of norms and production cost and product cos t estimates @Status of construction of cost norms Building norms in industrial enterprises has only been implemented in large -scale industrial enterprises with a number of major cost norms, while small-scale industrial enterprises, especially private enterprises, are often not build Norms or if built, only the feed norms have not been set yet However, the norms for veterinary drugs for pregnant sows are to be established, the norm of vaccines for cattle and cattle by age based on these costs Account for a relatively large proportion affecting production cost especially imported drugs and vaccines @ The current state of construction estimatimation Organisation of estimation is an important task of management in livestock enterprises The estimation situation of surveying enterprises in livestock enterprises, the author received 15/31 (accounting for 48.4%) of enterprises having made estimates.The remaining 16/31 enterprises did not make the estimation The period of estimation was made by year with 7/15 enterprises, with 8/15 enterprises determining the estimation period every month Types of basic cost estimatimation are set up such as cost of direct materials, cost of direct labours , cost of general production 2.2.3.2 The actual situation of determining costs for objects who are subject to costs of livestock enterprises in Northern Vietnam (a) Objects of cost accumulation Through the survey of the situation in livestock enterprises, the author can collect the objects of gathering the costs of livestock enterprises including: each stage of livestock products with 2/31 enterprises (accounting for 6.5%), was the final product of livestock enterprises of cattle were slaughtered pigs; cattle breeding was fresh milk, or calf with 9/31 businesses (accounting for 29%), was an order under the cooperation contract between the feed supplier and the consumption of all outputs with 3/31 enterprises There were 17/31 enterprises (accounting for 54.8%) determine the objects to collect costs according to the departments, team, and farms (b) Method of collecting production cost According to the author‟s survey document with 31/31 enterprises, there is a distribution of cost of general production However, the data shows that there are 21 out of 31 enterprises that allocate and each enterprise uses different methods of allocation of import-export cost It shows that 12/12 enterprises (accounting for 57.1%) are using the allocation criteria Import-export costs are cost of direct material This is the standard that is commonly used in livestock enterprises of cattle, the remaining 7/21 (accounting for 33.3 %) using the quality of research 2/21 businesses use other criteria according to the survey came up for allocation of Import-export costs Livestock enterprises of cattle have not applied the ABC method and the number of enterprises known this method is only 12/31 (accounting for 38.7%) 3%) The answer of the enterprise is unknown to the ABC method (c) Objects, period of calculation of production cost and product cost and method of calculating costs in livestock enterprises of Northern Vietnam @Objects of product cost According to survey documents, there are 26/31 (accounting for 83.9%) of livestock enterprises determined that the products obstained at the end of the br eeding process In addition, there are 2/31 enterprises identifying the objects to calculate the 15 cost as the product of each stage in the regulation In the breeding program, there are 3/31 enterprises identifying the objects to calculate the price according to the orders @ The period of the product price calculation In the current livestock enterprises, the determination of the price calculation period has not been unified and mainly implemented with the common goal of the livestock enterprises is to establish financial statements Therefore, in order to simplify the majority of enterprises with 15/31 enterprises (accounting for 48.4%) determined that the period of calculation is December 31 every year, 4/31 enterprises (accounting for 12.9%) determine the periodic calculation the price of cattle ranches, the remaining 12/31 (accounting for 38.7%) of livestock enterprises determines the period of monthly price calculation, in accordance with the period of cost collection and determining the results of enterprises on software accounting Normally, these livestock enterprises are all large-scale husbandry @ Method of the product cost calculation of livestock enterprises It can be seen that, each livestock enterprise determines the object to calculate the different costs The method of determining the price for each object of the cost is different in order to be more specific We consider in the livestock enterprises in Northern Vietnam as follows: Firstly: Determining the cost of livestock products is the cattle meat products for sale according to the method of self-production and self-consumption with closed breeding process + At Thai Viet Company Limited, all the piglets of the company in March 2017 were directly consumed with the value of 968, 352, 027 VND, the number of pigs remaining 1,000 breeds of the company directly transferred to regulations Pig breeding program at the company with a value of 330, 911, 000 VND + Summary of production cost during pig raising phase: the costs of direct material: 1, 173, 643, 441 VND, the costs of direct labour: 118, 662,000 VND, the costs of general production: 554, 491, 442 VND + Evaluation of unfinished products at the end of the pork product period: 1, 500, 000, 000 VND So, the total price of pork for sale in the period: 346, 796, 883 VND Diagram of accounting process of production cost collection and product price in Thai Viet pork products is summarised in Appendix (2.32) Process of accounting accumulation of production costs and product prices for pork exp ort TK1541 TK1545 1.173.643.441 1.173.643.441 TK632 TK1542 346.796.883 118.662.000 118.662.000 TK1544 554.491.442 554.491.442 1.846.796.883 1.500.000.000 346.796.883 (Source: Thai Viet Company Limited and summary’s authors) Secondly: Determine the product cost in dairy enterprises with closed breeding process 16 From the document of Ho Toan Joint Stock Company, the total price of products were determined in the period of raw milk product was 23, 2789, 821,974 VND, total milk output in 2018: 2,165,303 kg, unit price of Fresh milk was 10, 745.76 VND/kg, the cost of waste/ calf products was monitored separately and estimated value of 6,998.008 VND/ head with 50 animals Therefore, the company did not determine the price of the cow and the calf The calf is born, but only synthesises the cost and determines the cost of the main product being raw milk Diagram of accounting process of gathering production cost and product price for dairy farming activities of Ho Toan Joint Stock Company is summarised in Appendix (2.34) (Proces of accounting of production cost and product price in dairy farming in 2018 TK621 TK154 1.494.724.319 20.066.352.509 20.066.352.509 TK622 2.761.419.653 23.267.821.974 TK1552 (Cow culling) 2.761.419.653 TK627 10.184.204.539 TK1551 (Raw milk) 349.900.400 TK2115 (Cow breeding) 10.184.204.539 5.484.233.532 TK1541 (purchased cows, newborn cows) 1.638.000.000 33.011.976.701 3.766.745.114 30.739.955.906 Source: Ho Toan Company Limited and summary’s authors) Thirdly: Determine the price of livestock products that are pork products for sale according to the orders with closed breeding process According to survey, there were 3/31 (accounting for 9.6%) of industrial enterprises applying the method of calculating the price according to orders Namely, in January 2018, in Thai Viet Company Limited, production was carried out by the orders with Huong Nguyen Thinh Joint Stock Company In March 2018, the company‟s orders were not completed, so the total cost was the value of unfinished products on account 1545 with the amount for the order code of the Contract 01: 325, 967, 622 VND and the order code of Activity 02: 388, 868, 758 VND The diagram of the accounting process of gathering production cost and product price for pork products according to Thai Viet Company‟s orders is outlined in Appendix (2.40) Process of accounting accumulation of production costs by the orders, 03/2018 17 TK1545 ( HĐ01) TK1541 204.800.000 240.774.999 445.574.999 204.800.000 240.774.999 445.574.999 TK1542 204.800.000 21.359.162 99.808.460 47.464.804 47.464.804 21.359.162 26.105.642 47.464.804 TK1544 325.967.622 TK1545 ( HĐ02) 240.774.999 221.796.577 26.105.642 221.796.577 99.808.460 121.988.117 221.796.757 121.988.117 388.868.758 (Source: Thai Viet Company Limited and summary’s authors) Fourthly: Determinine production cost of breeding is a product of pork slaughtering by the orders which are not based on breeds of livestock enterprises (outscouring livestock) Through the study of the situation that livestock enterprises with only 31% (accounting for 6.5%) are livestock enterprises that process products but these companies not currently calculate the cost of each order of finished products when returning the processed goods, but synthesizing all expenses with the costs of direct labor and the costs of fixed asset deprciation accounts for the largest proportion and other expenses, synthesizing costs in TK 642 “the costs of management” to determine the profit and loss of processing activities in the month According to the accounting data of Northern Cau River Company, December 2017 in Table (2.8) is as follows: Since then, the current cost of processing outscoured livestock enterprises is not determined Therefore, it is difficult for enterprises to provide information on production cost and production value of livestock enterprises 2.2.3.3 The current situation of change analysis in production cost and product cost for corporate governvance in livestock enterprises in the North The contents of the analysis through the study of the situation in livestock enterprises in Northern Vietnam are as follows: + Analysing cost fluctuations through norms and estimatimations + Analysing cost fluctuations through cost and price reports 2.2.3.4 Administrative accounting report in livestock enterprises Through surveys of livestock enterprises in Northern Vietnam, the financial system has been fully implemented by enterprises However, for the cost management and cost reporting system with only 12/31 (accounting for 38.7%) The livestock enterprises set up periodically on a monthly basis or established when required by the internal manager is 4/31 (accounting for 12.9%) of enterprises The remaining of 31/31 (accounting for 48.4%), livestock enterprises have established management reports made at the end of the accounting period to serve the management 2.3 Assessing the current status of accounting of production cost and product cost in livestock enterprises in Northern Vietnam 2.3.1 The advantages of accounting of production cost and product cost in livestock enterprises in Northern Vietnam The advantages of accounting of production costs and product prices in livestock enterprises in Northern Vietnam are summarised in the following contents: 18 + Classification of production cost and identification of objects of cost accumulation + The method of cost allocation + Accounting of production cost and product cost in livestock enterprises in Northern Vietnam in the aspect of Financial Accounting + Production cost and product cost accounting in livestock enterprises in Northern Vietnam in the aspect of Administrative Accounting 2.3.2 Limitations and causes of accounting of production cost and product costin livestock enterprises in Northern Vietnam 2.3.2.1 Limitations The drawbacks of accounting of production cost and product cost in livestock enterprises in Northern Vietnam are summarised in the following contents: + Production cost classification + identification of cost collection objects and methods of cost accumlation of production + Restrictions in accounting of production cost and product cost in livestock enterprises in Northern Vietnam in the aspect of Financial Accounting + Limitation in the accounting of production cost and product cost in livestock enterprises in Northern Vietnam in the aspect of Administrative Accounting 2.3.2.2 Causes + Lack of guiding documents and applications of specific accounting regimes for livestock enterprises + In livestock enterprises, they have not built up a strong control system, only focused on Financial Accounting and had little interest in Administrative Accounting + Not fully aware of the importance of Administrative Accounting in production cost and product cost + Livestock enterprises associated with many risks, mainly small-scale, qualifications and accounting capacity are still limited CONCLUSION OF CHAPTER In chapter 2, the thesis has studied, surveyed and evaluated the status of accounting production cost and product cost in the aspect of Financial Accounting such as the organisation of accounting vouchers, accounting accounts, production cost and product cost accounting methods, and systems Accounting books, which present information on the financial statements and the impact of presenting information on the current livestock enterprises and orienting to apply IAS 41 standards Simultaneously, it is necessary to carry out the survey of the actual situation of accounting of production cost and product cost for livestock enterprises in the aspect of Administrative Accounting with contents such as setting up cost norms, estimating production cost, determining expenses for the objects who are subject to the costs, the actual situation of fluctuation analysis of production cost, the costs for managing enterprise, and reporting system of Administrative Accounting of livestock enterprises in Northern Vietnam Thereby, the thesis clearly points out the achieved results, limitations and causes in livestock enterprises This is a practical basis to provide solutions to complete the accounting of production cost and product cost in livestock enterprises in Northern Vietnam in the contents of Chapter 19 CHAPTER SOLUTIONS TO COMPLETE THE ACCOUNTING OF PRODUCTION COST AND PRODUCT COST IN ENTERPRISES OF LIVESTOCK BREEDING IN NORTHERN VIETNAM 3.1 Development orientation of livestock enterprises and requirements for completing accounting of production cost and product cost 3.1.1 Development orientation of livestock enterprises the organization of animal husbandry orientates the development of industrial farm animal husbandry, organic breeding and breeding in non-epidemic areas At the same time, implementing linkages in animal husbandry are "enterprises with outscouring farms" and "enterprises with cooperatives and households" There are priority policies for organic, biosecurity-oriented animal husbandry development in chain production At the same time, it is important to continue to adjust the livestock structure to suit the market associated with the consumption of the domestic market and export For pig breeding, it was expected to be adjusted down by 72.7% in 2016 to 68.2% in 2020 and maintained at 60% to 65% in 2030 Buffalo meat and beef was adjusted up from 8, 3% in 2015 to 8.9% in 2020 and over 10% in 2030 Specifically, adjusting the breed structure of herds of 60% to 70% is high-yield breeds for public breeding The rest are indigenous hybrids and varieties for household production For the development of dairy farming, it is necessary to implement agricultural restructure which are suitable with natural conditions and economics; Promote the development of self-cultivation dairy farms to grow grass using animal husbandry, use agricultural and industrial by-products for animal husbandry, reduce environmental pollution; Applying biotechnology in dairy farming to increase productivity and product quality of dairy farming The Department of Animal Husbandry Development orientation towards in 2030 is to continue to develop livestock diversely in a sustainable manner, livestock products for domestic and export needs, focusing on producing marketable products Large consumer markets are pork, eggs, poultry and processed products 3.1.2 Requests to complete accounting of production cost and product cost in livestock enterprises in the North The introduction of solutions to improve the accounting of production cost and product cost in livestock enterprises in Northern Vietnam is an urgent requirement to help businesses improve the efficiency of the use of resources and improve their ability to compete, and stand firmly in the market Therefore, the basic requirements of completing the accounting of production cost and product cost in the livestock enterprises in Northern Vietnam are as follows: Firstly, the completion of accounting of production cost and product cost must comply with the provisions in the current accounting legal documents such as Accounting Law, Accounting Standards, and Accounting Policies for Enterprises Secondly, solutions to complete accounting of production cost and produt cost must be suitable with the production characteristics of livestock enterprises Thirdly, the complete solutions must ensure the principles of savings and feasibility Fourthly, the accounting system of production cost and product cost must meet the requirements of providing information for both Financial Accounting and Administrative Accounting 20 3.2 Solutions to complete the accounting of production cost and product cost in livestock enterprises in Northern Vietnam 3.2.1 Completing classification of production cost in livestock enterprises in Northern Vietnam 3.2.1.1 Details in the cost items when classifying production cost in livestock enterprises by the purpose and utility of costs 3.2.1.2 Completing production cost classification according to IAS 41 orientation 3.2.1.3 Completing cost classification according to cost behavior 3.2.1.4 Completing method of separating mixed costs 3.2.2 Completing the method of determining cost for objects who are subject to expenses + Proposing criteria for allocating general production costs + Proposing the distribution of general ABC production cost for livestock enterprises 3.2.3 Solutions to improve the accounting of production cost and product cost in livestock enterprises in Northern Vietnam on the perspective of Financial Accounting 3.2.3.1 Completing the initial acquisition of production cost and product price accounting + Time for voucher rotation + Design additional accounting vouchers for livestock enterprises 3.2.3.2 Completing processing and systematising of production cost and product cost information Firstly, complete accounting accounts + Proposing to open a detailed account for the accounts of the costs of direct materials; the costs of general production; finished products of livestock enterprises Secondly, completing regconise for production cost and product cost Proposals in recognition of operations related to the accounting of production cost and product cost for the items: the cost of direct materials; the cost of direct labours, the costs of general production are as follows: + The part of the cost of direct materials beyond the norm + Proposing the recognition of cost and prices for outscouring livestock + Recognizing bonuses in outscouring from previous accounting periods + Recognizing the cost of selling scrap confiscated in livestock + Proposing to build a reward policy for livestock and recognizing the bonus costs in breeding + Recognizing the value of the new herd of cattle imported according to the right objects and the "care cost" part of this herd + Record the core value of biological assests due to liquidation, waste and "care costs" of this herd + Gathering and recognizing the exact objects who are subject to expenses with the costs of electricity, water and telephone service for breeding activities + Determining and recognising the general production's fee not to be transferred + Recognising the value of the initial cattle herd and depreciation value, depreciation period of the breeding herd + Proposing deductions for setting up price reduction for livestock products 3.2.3.3 Completing the accounting books of production cost and product cost + Proposing to complete the updated book form according to the current accounting regime 21 + Proposing to build a system of detailed accounting books in accounting of production cost product cost 3.2.3.4 Complete the presentation of information on financial statements + Proposing the presentation of biological asset information and products obtained from biological assets for multi-period products oriented to apply IAS 41 When presenting information on financial statements, the enterprises need to present the control of changes in book value of biological assets between the beginning and the end of the period + In order to implement this solution, livestock enterprises need to have a roadmap to determine the product quality of biological assets and agricultural products harvested from biological assets for many periods 3.2.4 Solutions to complete accounting of production cost and product cost in livestock enterprises in Northern Vietnam in the aspect of Admistrative Accounting 3.2.4.1 Completing the construction of norms and estimating production cost and product cost @ Completing the system of cost norms + Proposing to build the vaccine norms for piglets and pigs for meat + Proposing to build veterinary drug norms for pregnant sows @ Complete the estimation system Enterprises of livestock industry with specific characteristics of livestock products and industries, so in addition to the basic estimates, it is necessary to make an estimation of investment in renovating pigs (including sows and meat pigs) Therefore, the author proposes to establish a "report on the movement of meat pigs" to have a basis for building norms and cost estimation of industrial enterprises 3.2.4.2 Completing the methods of calculating product cost in livestock enterprises in Northern Vietnam + Proposing a method of calculating the price of livestock products with subproducts excluded (determining the cost of 1kg of meat weight increase of each herd) + Proposing to calculate the price of products for “dual” product of dairy farmings 3.2.4.3 Completing the contents of analysis and providing information of production cost and product cost for decision-making From the evaluation of production costs of livestock enterprises in Northern Vietnam, it has just been focusing on direct cost assessment The main method used is the comparision method on the overall volatility but it has not yet shown influences of each factor on that fluctuation The author proposes to analyse the fluctuations in the costs of direct material, the costs of direct labour, the costs of general production (the fluctuations in general production‟s costs and in the costs of general production) 3.2.4.5 Completing the final account system to provide information of production cost and product cost + Proposing to build a sammple of the final account to provide information of production cost and product cost + Proposing to build additionally and identify specific analytical criteria of livestock enterprises on the final account 3.3 Proposing conditions to implement solutions to complete accounting of production cost and product cost in livestock enterprises of cattle in the Northern Vietnam 3.3.1 For the State and the authorities The State should build, improve, and reform the legal framework for work and accounting profession, then, complete the legal framework on accounting in accordance with the reality of livestock enterprises in Vietnam Also, accounting practices will 22 probably become popular in the world in accordance with the economic conditions of market in Vietnam The Ministry of Agriculure and the authories should coordinate to impletment and take care of technical solutions and manage right from the initial stage of research, design and carry out which help livestock enterprises choose the optimal breeding plan 3.3.2 For professional associations - Accounting Association: It is necessary to have opinions to participate in the State‟s authorities in concretizing and guiding accounting and auditing standards when developing accounting and auditing regimes and policies ; Organize for training, and enhancing professional qualifications for accounting and auditing staff, disseminate policies on financial and accounting and auditing regimes, and information through scientific and technical achievements in the domestic and foreign financial accounting - Pig Breeding Association: The livestock sector at ministerial, provincial and city levels should develop and issue policies, mechanisms and other legal documents, and develop and disseminate national standards, programs, topics and projects related to livestock; have policies to protect legitimate benefits of livestock enterprises Additionally, it should organize for training, transferring technology, and disseminating knowlege about livestock 3.3.3 For livestock enterprises - Comply with the enacted accounting regime and strictly follow the instructions; - The accountants regularly participate in training courses, and improve qualifications; - Develop and complete the model of decentralization of management, economic accounting and evaluation of production and business efficiency CONCLUSION OF CHAPTER In chapter 3, the thesis presents the orientation of livestock enterprise development in the upcometime time along with the requirements of completing the accounting of production cost and product cost in livestock enterprises in Northern Vietnam Based on the rationale and reality, the thesis proposes solutions to complete the accounting of production cost and product cost in livestock enterprises in Northern Vietnam on the Finacial Accounting and Administrative Accounting perspectives Simultaneously, the thesis has proposed conditions for implementing solutions from the State and authorities, professional associations and from the enterprises 23 CONCLUSION In the current situation of Vietnam, the economy of international economic integration is deep and wide Along with the signing, enforcement and negotiation of free trade agreements, the impact on the economic development of Vietnam in general and the livestock enterprises in particular has been significantly affected This has created opportunities for livestock enterprises such as restructuring livestock industry, applying technical advances, creating linkages in animal husbandry, expanding consumer markets, and deeply participating in the supply chain Global agricultural products, promoting investment in livestock, policies and institutions change in accordance with international practices Along with that, the challenges faced by livestock enterprises are high livestock production, low productivity, agricultural growth mainly based on natural resources, environmental management, food safety in animal husbandry affecting product quality and competitiveness Science and technology investment in animal husbandry is low, the team of agricultural workers use in large numbers but not yet strong, lack of high-level human resources.Faced with these problems, livestock enterprises in Northern Vietnam need to manage costs and find measures to reduce product cost, maintain firmly standing in competition, sustainable development, food safety, protection products, and environmental protection Therefore, accounting of production cost and product cost are always concerned by livestock enterprises For the purposes of researching and completing the accounting of production cost and product cost in livestock enterprises in Northern Vietnam, the thesis has achieved some results as follows: Firstly, the thesis has systematized, analyzed, developed and clarified the basic theoretical issues of accounting of production cost and product cost in livestock enterprises on the Financial Accounting and Administrative Accounting as follows: Characteristics of livestock activities affect accounting of production cost and product cost in the aspect of Financial Accounting and Administrative Accounting, and accounting of production cost and product cost of advanced countries and experices for Vietnam Secondly, survey, study and evaluate the status of accounting of production cost and product cost in livestock enterprises in Northern Vietnam in the aspects of Financial Accounting and Administrative Accounting It pointed out the results, the limitations, the causes of limitations Thirdly, the thesis proposes solutions to improve the accounting of production cost and product cost in livestock enterprises on the Financial Accounting and Administrative Accounting, including the main solutions as follows: - Complete classification production cost in livestock enterprises in Northern Vietnam; - Complete the methods of determining costs for objects who are subject to expenses; - Complete solutions in the aspect of Financial Accounting: Complete the reception of initial information on accounting of production cost and product cost; Complete the processing and systematization of production cost and product cost information; Complete accounting books of production cost and product cost; Complete the presentation of information on financial statements; - Complete solutions in the aspect of Financial Accounting: Complete the construction of norms and estimation of production cost and product cos; Complete the methods of calculating production cost and product cost in livestock enterpris es in Northernn Vietnam; Complete the content of analysis and provision of production cost and product cost information for decision making; Complete the Final Account System to provide informationt of production cost and product cost 24 In order to increase the feasibility of solutions, the thesis has proposed conditions to implement solutions from the government, professional associations and from the internal enterprises of livestock enterprises in Northern Vietnam During the research and implementation of the thesis due to the confidentiality and complexity of accounting information, PhD Student did not receive all the answers as well as the number of questionnaires issued Besides, until now there has not been any intensive research on accounting of production cost and product cost in livestock enterprises Moreover, livestock farms operate under the type of small-scale enterprises leading to limited scope and scale of survey samples Although, PhD Student tried very hard but due to the new nature of accounting of production cost and product cost in livestock enterprises as well as the Vietnamese accounting regime has not yet issued and applied separate accounting standards for SOEs Since then, the thesis cannot avoid certain limitations PhD Student hopes that the research results of the thesis will contribute to supplementing, developing and completing the theoretical contents of accounting of production cost and product cost under the Financial Accounting and Administrative Accounting perspectives Simultaneously, it is a reference in studying and researching in accounting of production cost and product cost in SOEs in general and livestock enterprises in particular PhD Student would like to thank the dedicated help of supervisors, valuable comments of scientists and those who are interested in the contents of the thesis research! ... enterprises in Northern Vietnam 6.2.2 Secondary data collection Secondary data sources were collected from Website of cattle enterprises, Vietnam Livestock Association, Vietnam Veterinary Association,... livestock enterprises of cattle in Northern Vietnam 2.1.4.1 Characteristics of organisation of accounting apparatus in livestock enterprises of cattle in Northern Vietnam When studying the situation... cattle in Northern Vietnam have belonged to the author who surveyed the majority of using the accounting voucher system under the guidance of Vietnamese accounting regime in Circular 200/2014 /TT- BTC