Factors affecting the application of IFRS through the perceptions of business managers and auditors in Vietnam

  • Received January 5, 2020;
    Accepted March 19, 2020;
    Published April 3, 2020
  • Author(s)
  • DOI
  • Article Info
    Volume 18 2020, Issue #1, pp. 371-384
  • Cited by
    2 articles

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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.

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    • 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
    • Conceptualization
      Dung-Thi Doan, Hai Phan Thanh
    • Data curation
      Dung-Thi Doan, Lan-Ngoc Thi Nguyen, Hai Phan Thanh
    • Methodology
      Dung-Thi Doan
    • Project administration
      Dung-Thi Doan
    • Resources
      Dung-Thi Doan, Lan-Ngoc Thi Nguyen, Hai Phan Thanh
    • Writing – original draft
      Dung-Thi Doan, Lan-Ngoc Thi Nguyen, Hai Phan Thanh
    • Writing – review & editing
      Dung-Thi Doan, Lan-Ngoc Thi Nguyen, Hai Phan Thanh
    • Formal Analysis
      Lan-Ngoc Thi Nguyen
    • Supervision
      Lan-Ngoc Thi Nguyen
    • Validation
      Lan-Ngoc Thi Nguyen
    • Visualization
      Lan-Ngoc Thi Nguyen
    • Investigation
      Hai Phan Thanh
    • Software
      Hai Phan Thanh