Factors affecting IFRS adoption in listed companies: Evidence from Vietnam

Abstract

Nowadays, The International Financial Reporting Standards (IFRS) have been adopted in more than 160 countries. In fact, most ASEAN countries have adopted IFRS. The studies have noted the benefits of applying IFRS such as: Improving the quality of information on financial statements; Attract capital and enhance business cooperation opportunities, increase competitiveness, international integration in the world market; improve business performance, improve management and information quality; reflecting more reasonable business value; helping countries save cost of drafting, quickly integrate into international accounting standards; improve the quality of human resources in the field of auditing and financial accounting. Vietnam is a member of ASEM, APEC, WTO, AEC, etc. but the country is one of the few countries that has not yet announced an official roadmap for IFRS adoption. So IFRS adoption is necessary to proactively integrate more deeply into the regional and world economy. The Ministry of Finance of Vietnam has planned to adopt IFRS for listed firms, foreign-invested enterprises, public enterprises from 2022. In fact, some firms in Vietnam have voluntarily adopted IFRS as required during the operation process with related parties. This paper aims to identify factors that affect the adopting IFRS in Vietnamese listed firms. The authors used mixed research method by logistic regression model. Data was collected from 154 audited financial statements in 2018. The results show that some financial ratios such as return on equities (ROE) affect to IFRS adoption in listed firms of Vietnam. Therefore, if Vietnamese listed firms need to adopt IFRS effectively in the future, the Ministry of Finance should issue regulations for mandatory IFRS adoption to large firms with high rates of profitable on equity, promoting quality of auditing companies and audit program that are based on IFRS standards.

Compliance with IFRS 16 Mandatory Presentation and Disclosure Requirements and Company Characteristics: Evidence from an Emerging Market

“…IASB, till now, issued 27 standards under IAS, 17 standards under IFRSs and 8 interpretations under International Financial Reporting Interpretation Alnaas & Rashid, 2019;Alsaeed, 2006;Appiah et al, 2016;Bunea-Bontaş, 2017;Devalle et al, 2016;Glaum et al, 2013;Samaha & Khlif, 2016). Analysing the research on compliance revealed that some studies concentrated on measuring the compliance level with all IFRSs and its association with company attributes (Kumar & Saini, 2016;Tran et al, 2019;Tsalavoutas et al, 2020). Another group of studies engaged on the level of compliance with one accounting topic such as Goodwill and goodwill impairment testing, related party transactions and income tax (Devalle et al, 2016;Lazar & Velte, 2018) The last group of studies focused on the level of compliance with one of IFRS such as IFRS 3, IFRS 7, IFRS 9 and IFRS 15 (Glaum et al, 2013;Sarea & Abdulla, 2015).…”

The Influence of Regulations of the Ministry of Finance, Requirements from Related Parties, and the Application of IFRS in Teaching on the Quality of Accounting and Auditing Teaching Staff in Vietnam

“…Accordingly, Trinh (2019) believes that when the Ministry of Finance promulgates regulations on the application of IFRS, it will be a legal basis for training institutions to transform training programs of accounting and auditing for complying with the regulations; accordingly, lecturers must foster and update their knowledge of IFRS to meet teaching requirements, thereby contributing to improving the quality of accounting and auditing teaching staff. Similarly, there are studies by Tran et al (2019), Pham (2019).…”

Construction of Application Model of Accounting Framework Platform for Industry-Finance Integration Management under the Background of Multimedia Technology

“…Mobile Information Systems foundation for the development of management accounting informatization [13]. e research of Yousefi and Pishvaee shows that the introduction of cloud computing into management accounting information system can make reasonable use of spare resources in enterprises, and by improving the interactive use efficiency of each port of the system, it can well reduce the running cost of the system and strengthen the collaboration within enterprises [14].…”