Factors affecting applied perception and applicability of fair value accounting: The case of construction firms in Vietnam

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This study determines and measures the factors affecting the perception and applicability of fair value accounting by related personnel in enterprises, including business owners, managers, accountants, and internal auditors. At the same time, it analyzes the relationship between applied perception and the applicability of fair value accounting. 808 respondents, working in 350 construction enterprises in Vietnam, participated in the survey. This study combines qualitative and quantitative methods using SPSS and AMOS 20 with different techniques and structural equation modeling. The study results show that the applied perception significantly affects the applicability of fair value accounting at construction enterprises in Vietnam. Besides, eight different factors influence the applied perception of fair value accounting. Notably, six factors positively influenced the applied perception, including usefulness, reliability, cost-benefit relationship, size of the enterprise, qualification of accountants, and independent auditors. In contrast, two factors, legal matters and tax pressure, negatively affected the applied perception. This study suggests that managers of Vietnam’s construction enterprises develop solutions to improve the applied perception and applicability of fair value accounting, thereby perfecting the system accounting and improving business performance.

Acknowledgment
This study is conducted within the framework of the doctoral project subject to Decision No. 1407/QD-ĐHDT dated May 22, 2020, Duy Tan University, Vietnam. The authors would like to acknowledge the reviewers and the editor-in-chief for their assistance.

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    • Figure 1. Conceptual model
    • Table 1. Demographic characteristics of respondents
    • Table 2. Reliability and convergence of the scale
    • Table 3. Discriminant reliability
    • Table 4. Hypotheses testing
    • Table A1. Constructs, indicators, and questionnaire items
    • Table B1. Rotated component matrix and Cronbach’s Alpha
    • Conceptualization
      Tung Nguyen Thanh, Hai Phan Thanh, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Data curation
      Tung Nguyen Thanh, Hai Phan Thanh, Nhan Ho Van, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Formal Analysis
      Tung Nguyen Thanh, Hai Phan Thanh, Nhan Ho Van, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Funding acquisition
      Tung Nguyen Thanh
    • Investigation
      Tung Nguyen Thanh, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Methodology
      Tung Nguyen Thanh, Hai Phan Thanh, Nhan Ho Van, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Project administration
      Tung Nguyen Thanh, Hai Phan Thanh
    • Resources
      Tung Nguyen Thanh, Hai Phan Thanh, Tien-Thuy Thi Vo
    • Supervision
      Tung Nguyen Thanh, Hai Phan Thanh, Nhan Ho Van
    • Validation
      Tung Nguyen Thanh, Nhan Ho Van, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Visualization
      Tung Nguyen Thanh, Hai Phan Thanh, Nhan Ho Van
    • Writing – original draft
      Tung Nguyen Thanh, Hai Phan Thanh, Nhan Ho Van, Tien-Thuy Thi Vo, Mai Thi Thuong
    • Writing – review & editing
      Tung Nguyen Thanh, Hai Phan Thanh
    • Software
      Hai Phan Thanh, Mai Thi Thuong