Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam
-
DOIhttp://dx.doi.org/10.21511/ppm.18(2).2020.16
-
Article InfoVolume 18 2020, Issue #2, pp. 180-193
- Cited by
- 1582 Views
-
542 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study was conducted to determine the factors and their influence on accrual accounting reform in the public sector in Vietnam. Combining qualitative and quantitative research methods based on empirical surveys of 268 accountants, controllers, and auditors working in state agencies such as the Department of Finance, state treasuries and agencies receiving revenues from the state budget in 2019. This study shows that six factors influence the reform of the accounting system in the public sector in Vietnam to accrual-based: accounting staff – especially their expertise, competence, and work experience; training and support of the consulting experts; costs of the accounting reform; level of information technology application; funding and assistance from international organizations; legal environment.
At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time.
- Keywords
-
JEL Classification (Paper profile tab)M41, M48, Q56
-
References35
-
Tables8
-
Figures3
-
- Figure 1. Conceptual model
- Figure 2. Testing of CFA (standardized estimates)
- Figure 3. Testing of SEM (unstandardized estimates)
-
- Table 1. Demographic characteristics of respondents
- Table 2. Test results of Cronbach’s Alpha coefficients on scales
- Table 3. Results of EFA test
- Table 4. Composite reliability and variance extracted test
- Table 5. Results of hypotheses testing
- Table 6. Factors affecting the accrual accounting reform in Vietnam’s public sector
- Table 7. Test results of the differences between 2 groups of interviewees
- Table 8. Test results of the differences between genders
-
- Alijarde, M. I. B. (1997). The Usefulness of Financial Reporting in Spanish Local Governments. Financial Accountability and Management, 13(1), 17-34.
- Alshujairi, M. H. A. (2014). Government Accounting System Reform and the Adoption of IPSAS in Iraq. Research Journal of Finance and Accounting, 5(24), 1-21.
- Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.
- Carlin, T. M. (2003). Accrual Accounting & Financial Reporting in the Public Sector: Reframing the Debate (MGSM Working Papers Series No. WP 2003-22). Macquarie University.
- Chan, J. L. (2005). IPSAS and Government Accounting Reform in Developing Countries Title.
- Deaconu, A., Nistor, C. S., & Crina, F. (2011). The Impact of Accrual Accounting on Public Sector Management: An Exploratory Study for Romania. Transilvanian Review of Administrative Sciences, 32, 1-29.
- Eriotis, N., Stamatiadis, F., & Vasiliou, D. (2011). Assessing Accrual Accounting Reform in Greek Public Hospitals: An Empirical Investigation. International Journal of Economic Sciences and Applied Research, 4(1), 153-184.
- Hai, P. T., Tu, C. A., & Toan, L. D. (2019). Research on factors affecting organizational structure, operating mechanism and audit quality: An empirical study in Vietnam. Journal of Business Economics and Management, 20(3), 526-545.
- Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate Data Analysis (6th ed.). NJ: Prentice Hall.
- Harun, H., & Kamase, H. (2012). Accounting Change and Institutional Capacity: The Case of a Provincial Government in Indonesia. Australasian Accounting, Business and Finance Journal, 6(2), 35-50.
- Harun, H., & Robinson, P. (2010). The adoption of accrual accounting in the Indonesian public sector. Research in Accounting in Emerging Economies, 10, 233-250.
- HassabElnaby, H. R., Epps, R. W., & Said, A. A. (2003). The impact of environmental factors on accounting development: an Egyptian longitudinal study. Critical Perspectives on Accounting, 14(3), 273-292.
- Hien, N. T. T. (2015). Improving the financial reporting in Vietnam’s public sector [Hoàn thiện báo cáo tài chính khu vực công Việt Nam] (Doctoral Thesis). Ho Chi Minh University of Economics, Vietnam. (In Vietnamese)
- Hong, L. T. C. (2013). Building and improving the financial reporting system using in public agencies in Vietnam, following the international accounting standards [Xây dựng và hoàn thiện hệ thống báo cáo tài chính áp dụng cho đơn vị hành chính sự nghiệp ở Việt Nam theo định hướng chuẩn mực kế toán công quốc tế]. Ho Chi Minh University of Economics, Vietnam. (In Vietnamese)
- Hooper, D., Coughlan, J., & Mullen, M. R. (2008). Structural Equation Modelling: Guidelines for Determining Model Fit. Electronic Journal of Business Research Methods, 6(1), 53-60.
- Huy, P. Q. (2014). Improving the spending system in Vietnam’s public sector [Hoàn thiện hệ thống kế toán thu chi ngân sách tại Việt Nam] (Doctoral Thesis). Ho Chi Minh University of Economics, Vietnam. (In Vietnamese)
- Jorge, S. M. F. (2003). Local government accounting in Portugal in comparative-international perspective (Doctoral Thesis). University of Birmingham.
- Jovanović, T. (2013). Public sector accounting reform. Paper presented at 21st NISPAcee Annual Conference Regionalisation and Inter-Regional Cooperation (pp. 1-13).
- Lampe, H. W., Hilgers, D., & Ihl, C. (2015). Does accrual accounting improve municipalities’ efficiency? Evidence from Germany. Applied Economics, 47(41), 4349-4363.
- Lapsley, I., Mussari, R., & Paulsson, G. (2009). On the Adoption of Accrual Accounting in the Public Sector: A Self-Evident and Problematic Reform. European Accounting Review, 18(4), 719-723.
- Lüder, K. (1992). A contingency model of governmental accounting innovations in the political-administrative environment. Research in Governmental and Non-Profit Accounting, 7, 99-127.
- Nasi, G., & Steccolini, I. (2008). Implementation of accounting reforms. Public Management Review, 10(2), 175-196.
- Nistor, C. S., Deaconu, A., & Mare, C. (2014). Influence of environmental factors on the evolution of Romanian public accounting. Journal of Business Economics and Management, 16(6), 1154-1169.
- Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York: McGraw-Hill.
- Ouda, H. A. G. (2004). Basic Requirements Model for Successful Implementation of Accrual Accounting in the Public Sector. Public Fund Digest, 4(1), 78-99.
- Ouda, H. A. G. (2008), Transition barriers of accrual accounting in the public sector of developed and developing countries: statistical analyses with special focus on the Netherlands and Egypt. In S. Jorge (Ed.), Implementing reforms in public sector accounting. Imprensa da Universidade de Coimbra.
- Paulsson, G. (2006). Accrual Accounting in the Public Sector: Experiences from the Central Government in Sweden. Financial Accountability and Management, 22(1), 47-62.
- Peter Van der Hoek, M. (2005). From Cash to Accrual Budgeting and Accounting in the Public Sector: The Dutch Experience. Public Budgeting Finance, 25(1), 32-45.
- Peterson, R. A. (1994). A Meta-Analysis of Cronbach’s Coefficient Alpha. Journal of Consumer Research, 21(2), 381-391.
- Scapens, R. W., & Jazayeri, M. (2003). ERP systems and management accounting change: opportunities or impacts? A research note. European Accounting Review, 12(1), 201-233.
- Schumacker, R. E., & Lomax, R. G. (2004). A beginner’s guide to structural equation modeling (2nd ed.). Lawrence Erlbaum Associates, Publishers, Mahwah, New Jersey, London.
- Stamatiadis, F. (2009). Governmental accounting reform in the Greek public hospitals: Some preliminary results of its implementation. Paper presented at 4th Hellenic Observatory PhD Symposium. London School of Economics and Political Science.
- Stamatiadis, F., & Eriotis, N. (2011). Evolution of the Governmental Accounting Reform Implementation in Greek Public Hospitals: Testing the Institutional Framework. Paper presented at 34th Annual Congress of the European Accounting Association.
- The Vietnam Ministry of Finance. (2019). Curricular No. 1299/QD-BTC date 31/07/2019 approved the proposal for issuing the accounting standards for public sector in Vietnam. [Quyết định số 1299/QĐ-BTC ngày 31/07/2019 phê chuẩn đề án công bố hệ thống chuẩn mực kế toán công Việt Nam]. (In Vietnamese).
- Upping, P., & Oliver, J. (2011). Accounting change model for the public sector: adapting Luder’s model for developing countries. International Review of Business Research Papers, 7(1), 364-380.