Factors affecting the application of IFRS through the perceptions of business managers and auditors in Vietnam
-
DOIhttp://dx.doi.org/10.21511/ppm.18(1).2020.32
-
Article InfoVolume 18 2020, Issue #1, pp. 371-384
- Cited by
- 1677 Views
-
286 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The purpose of this study is to determine the factors that influence the application of the International Financial Reporting Standards (IFRS) in Vietnam through the perceptions of business managers and auditors. Combining qualitative and quantitative research methods based on a comprehensive analysis and aggregation of information available from various sources, the results of the questionnaire interviews of 500 managers and auditors currently working in Vietnam are offered. The results of the study show that factors affecting the applicability of IFRS in Vietnam are: legal basis for accounting activities; characteristics of enterprises; qualification and competency of the accounting teams; and corporate governance. The study also finds that governance factors and socio-economic and cultural conditions have an uncertain influence on the IFRS applicability. At the same time, there is no significant difference in awareness of the ability to apply IFRS between the group of enterprise managers and auditors and groups of people with different work experience. Among them, the qualifications and competencies of the accountant teams and the characteristics of enterprises are the two factors that have the strongest impact on the applicability of IFRS in Vietnam.
- Keywords
-
JEL Classification (Paper profile tab)M41, М38, Q56
-
References32
-
Tables9
-
Figures3
-
- Figure 1. Research model
- Figure 2. Standardized CFA results
- Figure 3. SEM results of the official research model (standardized)
-
- Table 1. Descriptive statistics of the survey sample
- Table 2. Cronbach’s Alpha test results of scales
- Table 3. EFA test results of scales
- Table 4. Results of assessing the reliability and convergence of scales
- Table 5. Test results of causal relationship between concepts in the research model (not standardized)
- Table 6. Test parameters in the research model (standardized)
- Table 7. Test results of the model hypotheses
- Table 8. Results of testing the difference between the two groups of managers and auditors
- Table 9. Result of testing the difference by work experience
-
- Adams, H., & Linh, N. T. (2005). Vietnam’s accounting and auditing regulations - Integration with international accounting and auditing principles. Vietnam: National Political Publishing House.
- Affes, H., & Callimaci, A. (2007). Les déterminants de l’adoption anticipée des normes comptables internationales: choix financier ou opportunisme? Comptabilité – Contrôle – Audit, 2(13), 149-166.
- Arpan, J. S., & Radebaugh, L. H. (1985). International Accounting and Multinational Enterprises. USA: Wiley.
- Chamisa, E. E. (2000). The relevance and observance of the IASC standards in developing countries and the particular case of Zimbabwe. International Journal of Accounting, 35(2), 267-286.
- Choi, F. D., & Meek, G. K. (2011). International Accounting (7th ed.). NJ: Prentice Hall.
- Chow, C. W., & Wong-Boren, A. (1987). Voluntary Financial Disclosure by Mexican Corporations. Accounting Review, 62(3), 533.
- Cuc, N. T. K., & Khanh, N. L. V. (2018). Factors affecting the voluntary process of applying IFRS in Vietnamese enterprises [Các nhân tố ảnh hưởng đến quá trình tự nguyện áp dụng IFRS tại các doanh nghiệp Việt Nam]. Vietnam Trade and Industry Review. (In Vietnamese).
- Dayanandan, A., Donker, H., Ivanof, M., & Karahan, G. (2016). IFRS and accounting quality: Legal origin, regional, and disclosure impacts. International Journal of Accounting and Information Management, 24(3), 296-316.
- Doupnik, T. S., & Salter, S. B. (1995). External Environment and Accounting Practice: A Preliminary Test of a General Model of International Accounting Development. The International Journal of Accounting, Education and Research, 30(3), 189-207.
- Duc. P. T. H., Ha, N. T., & Phuoc, N. T. (2019). Replace Vietnamese Accounting Standards (VAS) with International Financial Reporting Standards (IFRS): Is Vietnam ready? [Thay đổi hệ thống chuẩn mực kế toán Việt Nam (VAS) bằng chuẩn mực kế toán quốc tế (IFRS): Liệu Việt Nam có sẵn sang]. In Proceedings of the IFRS workshop – Opportunities and challenges when applying IFRS in Vietnam (pp. 54-68). (In Vietnamese).
- Goodwin, J., Ahmed, K., & Heaney, R. (2009). Corporate governance and the prediction of the impact of AIFRS adoption. Abacus, 45(1), 124-145.
- 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.
- Hegarty, J., Gielen, F., & Barros, H. (2004). Implementation of international accounting and auditing standards.
- Hung. D. N. (2016). Study the factors affecting the application of accounting standards in Vietnam. Journal of Economics and Development, 255(January 2016), 80-88.
- Jaggi, B., & Low, P. Y. (2000). Impact of culture, market forces, and legal system on financial disclosures. International Journal of Accounting, 35(4), 495-519.
- Joshi, P. L., & Ramadhan, S. (2002). The adoption of international accounting standards by small and closely held companies: evidence from Bahrain. The International Journal of Accounting, 37(4), 429-440.
- Khue, D. H. N., & Oanh, N. T. N. (2019). Study the factors affecting the application of international accounting standards (IAS/IFRS) [Nghiên cứu nhân tố tác động đến việc vận dụng chuẩn mực kế toán quốc tế IAS/IFRS]. In Proceedings of the IFRS workshop - Opportunities and challenges when applying IFRS in Vietnam (pp. 73-77). (In Vietnamese).
- Kolsi, M. C., & Zehri, F. (2013). The determinants of IAS/IFRS adoption by emergent countries (Working paper). Emirates College of Technology, Abu Dhabi.
- Martínez, J. A., Martínez, F. G., & Diazaraque, J. M. M. (2011). Optional accounting criteria under IFRSs and corporate characteristics: Evidence from Spain. Revista de Contabilidad-Spanish Accounting Review, 14(1), 59-85.
- Meek, G. K., Roberts, C. B., & Gray, S. J. (1995). Factors Influencing Voluntary Annual Report Disclosures by U.S., U.K. and Continental European Multinational Corporations. Journal of International Business Studies, 26(3), 555-572.
- Nguyen, T. D. K. (2013). Discuss the scale of non-financial factors affecting the application of accounting standards in small and medium-sized enterprises in Vietnam [Bàn về thang đo các nhân tố phi tài chính ảnh hưởng vận dụng chuẩn mực kế toán trong các doanh nghiep nhở va vua ở Việt Nam]. Journal of Economics and Development, 190(1), 55-69. (In Vietnamese).
- Nobes, C., & Parker, R. (1995). Comparative International Accounting (9th ed.). NJ: Prentice Hall.
- Phuong, L. T. H. (2019). Factors affect the adoption of the International Accounting Standards (IAS/IFRS) in Vietnam – Research on national and company level. University of Economics Ho Chi Minh City, Vietnam.
- Phuong, N. C. (2013). About the standard model – Vietnam’s accounting regime [Về mô hình chuẩn mực – chế độ kế toán của Việt Nam]. Journal of Economics and Development, 194(1), 31-37. (In Vietnamese).
- Phuong, N. C., & Richard, J. (2011). Economic Transition and Accounting System Reform in Vietnam. European Accounting Review, 20(4).
- Street, D. L. (2012). IFRS in the United States: If, When and How. Australian Accounting Review, 22(3).
- Thinh, T. Q. (2019). Factors affecting the application of International Standards on Accounting by countries [Những nhân tố tác động đến việc áp dụng chuẩn mực quốc tế về kế toán tại các quốc gia]. In Proceedings of the IFRS workshop - Opportunities and challenges when applying IFRS in Vietnam (pp. 79-84). Ha Noi. (In Vietnamese).
- Tran, T. C. T., Ha, X. T., Le, T. H. P., & Nguyen, N. T. (2019). Factors affecting IFRS adoption in listed companies: Evidence from Vietnam. Management Science Letters, 9, 2169-2180.
- Verriest, A., Gaeremynck, A., & Thornton, D. B. (2013). The Impact of Corporate Governance on IFRS Adoption Choices. European Accounting Review, 22(1), 39-77.
- Wallace, R. S. O., & Naser, K. (1995). Firm-specific determinants of the comprehensiveness of mandatory disclosure in the corporate annual reports of firms listed on the stock exchange of Hong Kong. Journal of Accounting and Public Policy, 14(4), 311-368.
- Zeghal, D., & Mhedhbi, K. (2006). An analysis of the factors affecting the adoption of international accounting standards by developing countries. International Journal of Accounting, 41(4), 373-386.
- Zehri, F., & Chouaibi, J. (2013). Adoption determinants of the international accounting standards IAS/IFRS by the developing countries. Journal of Economics, Finance and Administrative Science, 18(35), 56-62.