Nghiên cứu áp dụng kế toán suy giảm giá trị Tài sản cố định hữu hình tại Việt Nam (2)

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information of any enterprise, which covers total TFA, total assets,

Introduction
1. The necessity of the thesis

business performance, owner’s equity, ROA and ROE, etc.

Currently, Vietnam’s enterprises are applying the accounting based

Different studies on fixed asset accounting completion in Vietnam

on Vietnam’s accounting standard as well as the accounting system

have not considered impairment accounting as an important task,

issued by Ministry of Finance. There have been 26 Vietnam’s accounting

resulting in a lack of research for complete solutions. To the author’s best

standards issued owing to the selective application of international

understanding, this leaves a hole for research on tangible fixed assets in

accounting standards so that they are appropriate with Vietnam’s

Vietnam. Furthermore, under the context of international economic

economy. From 2001 – when the first accounting standard in Vietnam

integration,

was issued to present, the accounting regime and accounting reality have

implementation in specific countries is an objective requirement, which

experienced

into

helps to avoid out-of-date accounting. Although there have been various

international accounting standards. The quality of accounting information

studies on Vietnam’s accounting integration into international accounting,

has been improved in terms of publicity and transparency; which helps to

their scope is too general, causing difficulty in intensive research on each

build up information fairness for enterprise’s external subjects. The

standard. So far, there has been no specific thesis looking into impairment

International Accounting Standard Board (IASB) initially issued

accounting of tangible assets in Vietnam, which is, in fact, an important

international accounting standard number 36 (IAS 36) – Impairment of

and complex issue, causing arguments as well as related problems in

assets in 6/1998, which was officially put into effect on 1/7/1999. So far,

implementation and attracting numerous studies in the world. As a result,

IASB has amended the IAS 36 for several times, which has been applied

the thesis named “A study on the accounting for tangible fixed asset

widely in America, European Union, Australia, New Zealand, China,

impairment in Vietnam” is carried out as a PhD dissertation.

various

changes,

which

gradually

integrated

Malaysia, Hongkong and Taiwan. In Vietnam, Ministry of Finance has

2.

the

research

on

international

accounting

standard

Research objective and research question

compiled the accounting standard on impairment of assets. However, this

The general objective of the dissertation is the evaluation on conditions

standard has not officially issued.

and probability of implementing accounting for tangible fixed asset

IAS 36 requires the book value of assets including tangible fixed

impairment in Vietnam, which is combined with lessons learnt of

ones (TFA) which do not exceed recoverable amount. If the book value

implementing that kind of accounting in the world in order to determine

of a TFA is higer than recoverable amount, its book value should be

the effective process and roadmap of accounting for fixed asset

reduced. IAS 36 is one of significant international accounting standards.

impairment in Vietnam. Following are specific objectives:

The reduced book value of TFA would have an impact on key financial

- Giving an assessment of economic context, accounting integration
demand, current status of accounting information related to tangible fixed


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assets provided by Vietnam’s enteprises in order to identify the necessity

continuously operating. Therefore, it does not cover tangible asset

of accounting for tangible fixed asset impairment in Vietnam.

valuation in cases of bankruptcy, dissolution or owning changes. As a

- Studying the worldwide lessons learnt of implementing

matter of fact, the dissertation only concentrates on accounting for

accounting for tangible fixed asset impairment, which serve as references

impairment of a specific asset which is tangible fixed one rather than

for the establishment of accounting process for tangible fixed asset

any other kinds of assets. Although the scope of the international

impairment in Vietnam in the most appropriate basis.

accounting standard number 36 is comprised of tangible fixed asset,

- Undertaking a survey on perception, response and opinions of the

investments in subsidiary and joint-venture companies, long-term joint

economy-related subjects towards the implementation of accounting for

venture capital contribution as well as intangible fixed assets; this study

tangible fixed asset impairment in Vietnam, which, in specific, are to be

specifically looks into this standard’s effect on tangible fixed assets.

collected and analyzed in order to propose the process for
implementation.
To serve the research objectives, the research questions to be
presented as follows:

The thesis does not try to provide a research on impairment of

tangible fixed assets due to the enteprise’s depreciation after long time
utilization, but it focuses on accounting for impairment of tangible fixed
assets based on unexpected reasons which result in lower asset’s book

- It is essential to implement accounting for tangible fixed asset

value than recoverable value. The unexpected reasons causing lower

impairment in Vietnam? What are reasons affecting the urgent

recoverable value than book value might derive from internal or external

implementation of the above mentioned accounting? What are negative
impacts of not implementing this accounting?
- Do different economic subjects agree to implement accounting for
tangible fixed asset impairment? What are solutions to achieve high
agreement?
- What are possible amendments to bring about effective
implementation of accounting for tangible fixed asset impairment in
Vietnam?
3. Research scope and research method
Research scope
This dissertation focuses on the accounting for impairment which
is specifically applied to tangible assets in the case that the enterprise is

factors of the enterprises such as asset utility inefficiency, difficultyconfronting consumption market based on asset utilization, etc.
The dissertation only looks into impairment of tangible fixed assets
in enterprises, not pubic sector.
Research methods
Following are research methods used in the dissertation:

- Synthesis and analysis
The method of synthesizing and analyzing is carried out based on the
collection of previously published scientific research results. The author
analyzed different opinions, arguments and previous results to understand
the nature of the issue. Then, the author created a linkage among elements
that were analyzed to present them in a logical system. The synthesis and


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analysis was used for Chapter 1 – Literature review and Chapter 2 –

time, optimize the benefit of asset’s real value reflection-as expected by

Arguments about accounting for impairment of tangible fixed assets.

the standard issuer.

- Qualitative method

In terms of academic aspect

The qualitative method was utilized in practical research. This method

- The dissertation systemized general arguments concerning the

aims at exploring reality, describing observed phenomenon and

accounting of tangible fixed assets which directly impacts on the

classifying phenomena; which help to identify the nature of new problem

necessity of accounting for impairment of tangible fixed assets; as well as

that has not been covered. The used techniques of qualitative method are

arguments about accounting for impairment of tangible fixed assets based

group discussion, deep interview and questionnaire.

on the synthesis, analysis and comparison of different opinions

4 Contributions of the study

worldwide.

This study was carried out under the context of Vietnam’s

- The dissertation added a research tendency for new accounting

accounting implementation based on standards and regulations without

issues in Vietnam, which refers to research on reaction, awareness and

any regulations on impairment of asset value. From the perspective of

collection of comments and feedbacks from economic subjects before the

international accounting integration, currently, there are numerous

accounting for impairment is issued and implemented.

countries applying accounting for impairment of assets, so, it is an

In terms of practical aspect

objective requirement to study the application of this accounting in

- The dissertation clearly identified reasons for the implementation

Vietnam. This study is also compatible with the process of policy issue.

of accounting for impairment of assets in Vietnam as well as drawbacks

In detail, before the policy is released, it is necessary to conduct studies

of not implementing this accounting.

evaluating real situation, obtaining experiences and analyzing possible

- The dissertation synthesized reactions, awareness and opinions of

disadvantages. The study on reaction of relevant economic subjects in

different economic subjects regarding accounting for impairment of

accounting for impairment of assets helps to bring about suitable

tangible fixed assets, which would be the basis for its implementation.

amendments for Vietnam to apply.

- The research results serve as references for the study on issuing

Previous studies in the world illustrated that on issuing the

accounting regulations on impairment of tangible fixed assets in Vietnam,

accounting for impairment of assets, the compliance has been low

and suggestions for enterprises to implement to manage their tangible

whereas the behavior taking advantage of accounting for impairment has

fixed assets.

been rather high. Thanks to this study, it is hoped that the author can

This study is conducted under the context of not implementing

contribute specific solutions to mitigate opportunity behavior, at the same

accounting for impairment of tangible assets in Vietnam. However,
references for this study reveal reality of implementing this accounting in


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different countries, then, in my opinion, this research would maintain
long-term value in Vientam.

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5 Dissertation structure
The structure of the dissertation is presented as follow:
Introduction
Chapter 1: Literature review on the dissertation topic
Chapter 2: Theories about accounting for impairment of tangible
fixed assets
Chapter 3: Research methods
Chapter 4: Reality of applying probability of accounting for
impairment of tangible fixed assets in Vietnam
Chapter 5: Solutions to the application of accounting for
impairment of tangible fixed assets in Vietnam
Conclusion

CHAPTER 1
LITERATURE REVIEW
1.1 International studies
In searching for literature review of foreign studies which are
relevant to the thesis, the author successfully collected a number of
reseaches mainly under the type of journal articles. Most of these
articles proposed conclusions based on evidences from quality
research. The data used in qualitative research shared the same feature
of being extracted from countries implementing accounting for
impairment of assets. The synthesis of research data concerning the
accounting for impairment of assets focuses on the following issues:
Firstly, the dissertation studies motivation affecting the decision on

business managers’ recognition of asset impairment. Secondly, it
discusses the relationship between the decision of book value of asset


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impairment and the management quality of the enterprise. The accounting

essential to the integration process. Numerous authors have identified the

of asset impairment heavily depends on evaluation of the enterprise’s

benefit of information related to tangible fixed asset impairment for

internal managers on its asset utilization efficiency in the future. Good

finance and accounting users, especially in the context of while and post

business management usually holds objective assessment of assets and

economic crisis. Although there is an introduction to and discussion about

does not avoid impairment of assets when there are any signals. Thirdly,

the international accounting standard of asset impairment, the studies on

the research studies the influence of whether or not allowing the reversal

the completion of tangible fixed asset accounting in Vietnam’s enteprises

of booked assets as impaired when there is economic recovery signal on

have not appreciated the necessity of book value of tangibe fixed asset

the decision of booking impaired assets. Forthly, the study researches level

impairment, they also have not identified the addition of information

of compliance to accounting standard of asset impairment. Fifthly, it looks

about tangible fixed asset impairment, thus, these studies are not

into the relationship between armotization and asset impairment. Sixthly,

intensively carried out.

it compares the accounting standard of asset impairment issued by
Financial Accounting Standard Board of America (FASB) with the one
by International Accounting Standard Board (IASB).
1.2 Domestic studies
Domestic studies relating to the topic of the dissertation focus on
the following issues:
- Completion of accounting for impairment of tangible fixed assets
in Vietnam’s enteprises.
- Reality of accounting implementation and solutions to complete
Vietnam’s accounting based on international integration.
- Necessity of information about accounting for asset impairment in
Vietnam.

- Research and clarification of contents related to the regulation on

1.3 Comments on revious studies and identification of research
issue
Both international and domestic studies show the necessity of
providing additional information of accounting for tangible fixed asset
impairment in Vietnam. In fact, accounting for asset impairment is a
complex task, which can be easily exploited in the contrastive intention to
the issuer’s. Thus, in order to achieve the general objective of the
dissertation, the author determines key problems to be solved include:
- An evaluation on reality of accounting information related to tangible
fixed asset in Vietnam at present and disadvantages of not implementing
accounting for tangible fixed asset impairment, which help to analyze the
necessity of accounting implementation of tangible fixed asset
impairment in Vietnam.

international accounting standard number 36 and the necessity to

- A survey on awareness, reaction and opinions of relevant subjects about

implement impairment book value of tangible fixed assets in Vietnam.

process of making balance sheet as well as those of information users and

Based on published domestic studies, it can be seen that continuous
research on international accounting standard application in Vietnam is

other subjects in the economy about accounting for tangible fixed asset

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impairment; a collection of contributions to propose effective approach of

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Financial accounting provides information to enterprise external

the above accounting in Vietnam.

subjects. Its guideline is completing and issuing international accounting

- Lessons learnt from actual accounting for asset impairment worldwide

standard towards transperant and beneficial information provision to

in order to propose the implementation process in Vietnam.

users. The financial accounting of tangible fixed asset shares the same
content as the above. In section 2.2, the dissertation presents accoutnign

Chapter 1 conclusion

process of tangible fixed assets with steps of initial measurement, cost

Chapter 1 provides a synthesis of international and domestic studies

incurred on measurement subsequent to initial recognition, amortization,

linked with the thesis. Then, the author analyzed issues that have been

book value of tangible fixed assets at the end of accounting period,

studied so far. Based on the inheritance of previous research results and

derecognition of tangible fixed assets and requirement of tangible fixed

the hole to be further studied, the author presented reasons for conducting

assets in financial statement presentation.

this research and identifying essential issues in the research.

2.3 Models for tangible fixed asset recognition
The use of tangible fixed asset (TFA) recording model has direct

CHAPTER 2

impact on the necessity of accounting for impairment of tangible fixed

THEORIES ABOUT ACCOUNTING FOR IMPAIRMENT OF

assets. When applying fair value model, at the time of making financial

TANGIBLE FIXED ASSETS

statement, the enterprise would adjust report value of TFA based on the

2.1 Tangible fixed assets

market despite its higher or lower revaluation than book value at that

Section 2.1 of the dissertation presents contents related to standard

time. If value recording of tangible fixed asset based on historical cost

of recognizing tangible fixed assets, classifying these assets based on

applies accounting for asset impairment, and at the time of making

different criteria and demonstrating the role of these assets in an

financial statement, TFA recoverable value is lower than its book value;

enteprise’s operation. The typical feature of tangible fixed assets is that

the asset should be recorded as being impaired. Therefore, in case of fair

they are invested for long-term use serving business operation in order to

value model, the accounting for TFA does not reflect impairment. In

create future cash flow for the enterprise. They are also considered as an

other words, TFA accounting under fair value model and the application

important basis for the selection of model based on the combination

of accounting for impairment of TFA negates each other. The new

between initial price and book value impairment, which is presented in

tendency accounting is gradually changing to the application of fair value

the latter sections of chapter 2.

model to asset items in the balance sheet. However, due to typical

2.2 Accounting for tangible fixed assets

features of TFA, the author recognizes that the application of fair value
model still maintains a number of inappropriate points, making an


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enterprise’s report data to be distorted. Thus, based on the analysis of two

basis for implementation proposal in Vietnam, which is presented in

TFA recording models, the author succeeded in giving persuasive reasons

chapter 5.

for applying historical cost accounting for TFA, which is combined with
accounting for impairment of TFA.
2.4 Accounting for impairment of tangible fixed assets
Accounting for impairment of TFA aims at providing information

related to book value of TFA which cannot exceed recoverable value. If
the book value of TFA is higher than recoverable value, that asset should
be recorded as being impaired. The recoverable value of TFA is
determined based on the comparison between fair value minus sale cost
and using value of the asset in the enterprise. Then, the higher value
would be chosen as recoverable one. The record of impairment of TFA
according to IAS 36 also covers typical features of TFA in any enterprise,
which serve long-term use and future economic benefit. The using value
is determined based on future economic benefit that TFA could bring to
the enterprises.
Accounting process for impairment of TFA presented in the
dissertation includes the stages of identifying

cash-generating unit;

examining price discount signal; determining recoverable value;
recording and presenting impairment of assets; releasing information of
TFA impairment in financial statement.
Reality of applying accounting for impairment of TFA in the
world today is affected by international accounting standard 36 which is
issued by international accounting standard board and American
financial standard number 144 which is issued by Financial accounting
standard commission in Amarica. The dissertation supplied an analysis
into great differences between the above two standards, serving as the


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Chapter 2 conclusion

CHAPTER 3
RESEARCH METHODS
3.1 Analytical frame of the dissertation
The process of synthesizing and analyzing theories related to

TFA is invested by the enterprises with the aims of long-term use
for business operation activities. Based on specific features and functions
of TFA in an enterprise, the accounting should record typical information
of TFA. The traditional model of historical cost records TFA according to
its initial cost and depreciation. In addition to amortized value of TFA,
which is accumulated in amortization ratio, TFA also loses value due to
other reasons. Accounting for impairment of TFA has helped to release
TFA information which is not higher than recoverable value. This result
in overcoming the disadvantage of historical cost model. Despite the
tendency of fair value accounting, the combination between historical
cost model and impairment accounting is still advantegous to TFA. All
aspects of features, roles and contents of TFA as well as accounting for
impairment of TFA were presented in chapted 2.

accounting for impairment of TFA revealed the importance of accounting
transaction for impairment of TFA and usefulness of accounting
information about impairment of TFA. The literature review of
international studies also stated that in spite of its positive purpose, the
transaction of accounting standard for asset impairment can be easily
exploited due to opportunity behavior and pre-implementation anticipated
problems. In Vietnam, there have been various studies on the completion
of the standard. Although the accounting mechanism in Vietnam follows
the tendeny of international integration, its published studies are on large

scale without any specific research on accounting for impairment of
assets. Researches on the completion of TFA in Vietnam have neither
solved concerning problems nor added information of accounting for
impairment of TFA. Based on the theories, literature review and
identification of gaps in previous studies, the author determined the
pupose of this dissertation as giving a comprehensive research on
probability, demand and solutions to effectively implement accounting
for impairment of TFA in Vietnam. The analytical frame of this
dissertation was illustrated in figure 3.1.


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different opinions, arguments and previous researches to explore the

Purpose of the
dissertation
The role of
impairment
information to
TFA
Tendency, lessons
learnt from the
implementation of
accounting for
impairment of
TFA in the workd
Requirement of

additional
information about
impairment of
TFA in Vietnam

nature of the issue. Then, the author created a linkage among analyzed
elements to present them in a logical system.
Synthesizing
and analyzing
methods

Theoretical
basis

General
research

Identification
of
probability,
demand and
solutions to
implement
accounting
for
impairment
of TFA in
Vietnam

Qualitative

method

Evaluation on
economic context,
accounting
integration
Evaluation on
information
supply demand

Evaluation on
implementation
probability

The method of synthesis and analysis is utilized in Chapter 1–
literature review and Chapter 2 – Theories about accounting for
impairment of TFA.
Qualitative method
The author used qualitative method in pratical research. This
method aims at exploring reality, describing the observed phenomenon
and classifying symptoms in order to identify the nature of the new issue
that has ever been covered. The techniques used in qualitative method
include group discussion, deep interview and questionnaire.
Group discussion is conducted to build up questionnaire, questions
for deep interview before the real interview and the pilot one. The
purpose of group discussion is identifying the structure of given questions
in the questionnaire and the content of the deep interview in order to

Figure 3.1: The dissertation’s analytical frame

survey awareness and perception of different subjects about accounting

Source: Suggestion by the author

for impairment of TFA, as well as their reactions to the situation with
TFA impairment accounting implementation in Vietnam, then, it is

3.2 Research methods of the dissertation
In order to solve the research problems, the author use two main
research methods of synthesis and analysis as well as qualitative
approach.
Synthesizing and analyzing method
The method of synthesizing and analyzing is carried out based on
the collection of previously published studies. The author analyzed

possible to collect the recommendations. The author directly moderated
the group discussion. There were six participants in group discussion,
who were accounting lecturers. In addition, there were students majoring
in accounting joined as independent secretaries to take notes of discussion
opinions. The content of pilot survey had been prepared beforehand by
the author so that it could be amended, discussed and added with new
points. After having collected opinions from group members about the
survey content, the author built up the questionnaire and interview


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questions. After that, the author consulted experts for their opinions abut

about the process of making financial statement, using financial

the questionnaire and the survey questions. The author carried out pilot

statement, and those of other economic subjects about the implementation

interview and survey to seek for any arising problems and adjusted some

of accounting for impairment of TFA.

points. Lastly, the final questionnaire and interview questions were fixed.

4.1 The effects of Vietnam’s economy context on demand and

The deep interview was conducted according to the available

probability of applying accounting for impairment of tangible fixed

questions used for two subjects including strategic investors and credit

assets
The two outstanding issues that affect demand and probability of

officials of commercial banks.
Questionnaire-based survey was applied to subjects relevant to the

applying international accounting standards in general and those of asset

process of making financial statement in enterprises as well as small and

impairment in particular in Vietnam include international integration and

retail investors.

the development of stock market in Vietnam. Vietnam’s economy is
integrating more and more deeply and widely into the international

Chapter 3 conclusion
In chapter 3, the author identified the analytical frame and research

economy, which requires accounting to serve as the mutual language, and

methods to serve the dissertation objectives. Results from the application

international standards to be studied and applied here. At the same time,

of

in order to ensure a sustainable stock market, a significant factor is

research

methods

recommendations

for

would

help

successfully

the

author

applying

the

in

determining

accounting

for

impairment of TFA in Vietnam.
CHAPTER 4
REALITY OF APPLICATION PROPABILITY OF ACCOUNTING
FOR IMPAIRMENT OF TANGIBLE FIXED ASSETS IN
VIETNAM
In the context that Vietnam has not implemented accounting for
impairment of tangible fixed assets, the contents of reality survey include
affecting economic and accounting background on implementation
demand for TFA impairment accounting; accounting information

provided by enterprises in the situation of not implementing accounting
for impairment of TFA in order to identify drawbacks due to the
situation; survey on awareness, reaction, opinions of relevant subjects

complete, transparent and benefitial information released by listed
enterprises. The implementation of accounting for impairment of TFA
would contribute to the addition of useful information provided for
information users.
4.2 Reality of accounting information of TFA released by Vietnam’s
enterprises
Based on accounting information related to TFA released by
enterprises in Vietnam, the dissertation stated concerning problems. Not
implementing accounting for impairment of TFA has caused regretfull
effects such as enterprises’ capital waste, long-term information hiding in
terms of assets’ real value and corruption hiding in terms of asset
investment, etc.


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4.3 Survey on opinions about applying accounting for impairment of
tangible fixed assets in Vietnam
The author conducted a survey on awareness, reaction and

CHAPTER 5
SOLUTION TO THE IMPLEMENTATION OF ACCOUNTING
FOR IMPAIRMENT OF TANGIBLE FIXED ASSETS IN

contributions of enteprises, investors, credit officials of commercial banks

VIETNAM

and accounting experts about the application of accounting for

5.1 The opinion of implementing accounting for impairment of

impairment of TFA in Vietnam. The dissertation analyzed survey results

TFA in Vietnam

to serve them as the basis for suggested solutions in chapter 5.
Chapter 4 conclusion

The correct identification of applying accounting for impairment of
TFA in Vietnam helps to bring about effective implementation. The

The context of Vietnam’s integration to the international economy

opinion of applying the above mentioned accounting in Vietnam is

and development of stock market are objective requirements for

determined based on the specific context that this country’s accounting

Vietnam’s completion of accounting standards in general and

system still maintains typical features of accounting transaction for

implementation of accounting for impairment of TFA in particular.

impairment of TFA. The dissertation’s insistence on applying accounting

However, the survey results of economic subjects revealed arising

for impairment of TFA in Vietnam covers: this country’s determination to

problems for the implementation of accounting for impairment of TFA in

implement accounting for impairment of TFA despite avoidance and

Vietnam. The number of TFA impairment accounting supporters in

disbelief; improvement of instruction, training courses on accounting for

enterprises is higher than its opponents. However, the latter still makes up

impairment of TFA due to its complexity; appropriate roadmap for

a considerable ratio. It is essential to conduct more research on improving

implementation in Vietnam.

the agreement about new accounting policy which creates favoourable

5.2 Solution to the application of accounting for impairment of TFA

conditions for effective implementation. Small and retail investors have

in Vietnam

not highly agreed due to their worries about unsustainability of the stock
market. Therefore, the implementation process needs to go step by step in
order to avoid causing negative thinkings. Credit officials and long-term
investors highly agree but still worry about difficulty in implementation
and unfair information, etc. These survey results would be the foundation
for the author to identify problems to be solved and propose solutions in
chapter 5.

Based

on

experiences from implementing

accounting

for

impairment of TFA in the world, the author gave implementation
proposal in Vietnam, and consulted accounting experts for solutions to
apply accounting for impairment of TFA.
5.2.1 Specific solutions to the implementation of accounting for
impairment of tangible fixed assets at enterprises
Suggested solutions to the implementation of accounting for impairment
of TFA at enteprises aim at simplifying the implementation process in


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enterprises. Implementation steps are specified through figures in order to

CONCLUSION

improve the feasibility of new accounting policy, which cover cash-

Tangible fixed assets build up basic facilities of any enterprise,

generating unit; implementation solutions to TFA investment preparation;

which serve business operation activities. Enterprises invest in TFA for

implementation solutions to TFA utilization; solutions to record and

long-term use. The effective investment in TFA lays the foundation for

present information of TFA impairment.

sustainable development. The value of TFA usually makes up a large

5.2.2 Application roadmap

amount of total assets’ value of an enterprise. Based on the current

Accounting for impairment of assets is a complicated and greatly

auditing mechanism in Vietnam, the net value of TFA in the balance

estimated aspect. The lesson learnt from researching the implementation

sheet is recorded according to the criteria of residual value of TFA.

of accounting for impairment of assets in the world showed that this kind

However, that information is not really useful to information users in

of accounting transaction would be easily exploited in the bias intention

some cases due to different reasons that devaluate the assets in an

of the enterprise manager, so, a roadmap is essential to ensure effective

unexpected basis. Accounting for impairment of TFA ensures that the

implementation. The suggested roadmap of TFA impairment accounting

value of recorded TFA is not higher than recoverable value. Although

in Vietnam is built up with periods of preparation; implementation 1;

accounting for impairment of TFA has been applied in numerous

implementation 2. The suggested periods are ascending based on

countries, it still confronts with arising problems which reduce expected

compliance requirement and linkage level of implementation tasks which

results. The research on “Application of accounting for impairment of

aim at complete compliance to IAS 36.

tangible fixed assets in Vietnam” helps to find out solutions to the

Chapter 5 conclusion
Although accounting transaction for impairment of TFA is

effective implementation of this accounting transaction in Vietnam.
Main problems solved in the dissertation

complex, Vietnam should determine to implement it. In order to

- The dissertation provided an overview of thesis-related theories.

effectively apply accounting for impairment of TFA which aims at

- It synthesizes previous studies on thesis-related theories.

improving quality of accounting information, providing valuable

- It analyzed the context of economy and accounting in Vietnam as

information to users, it is necessary to establish specific instruction and

well as arising problems due to not implementing the accounting for

suitable roadmap. In chapter 5, the author proposed solutions to

impairment of TFA, which revealed the objective necessity to implement

efficiently implement accounting for impairment of tangible fixed assets

this accounting transaction.

in Vietnam.

-It summarized results of the survey for reactions, awareness and
opinions of enterprises, investors and credit organizations about their


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intention of applying the mentioned accounting in Vietnam, which helped

quantitative model to analyze factors affecting level of agreement of

to identify problems to be solved.

economic subjects about the implementation of accounting for

- Based on the theory, lessons learnt from worldwide and

impairment of TFA in Vietnam. However, during the research process,

Vietnam’s context, the dissertation proposed solutions to apply

some experts commented that the theoretical basis was not strong

effectively the mentioned accounting in Vietnam. Suggested solution

enough to carry out that model, also, the number of responses was

groups include proposal for implementation process at enterprises,

inadequate, so, some contents of the questionnaires were not analyzed in

proposal for application roadmap; proposal for awareness and actions of

the dissertation.

other individuals and organizations.
Limitations of the dissertation

Suggestions for future research
The dissertation has not collected enough data to conduct

In addition to the achievements, the dissertation still maintains

quantitative research. Based on th results in the dissertation, other studies

some drawbacks. In specific, due to long time research which fell into

can expand the scale of data collection in order to apply the research

period with numerous changes of international economy in general and

model analyzing factors which influence willingness to agree on a new

Vietnam’s economy in particular, then, the most recent economic

accounting policy.

context cannot be updated in the dissertation. In the survey of economic

The dissertation was carried out under the context of not

subjects, the number of responses was not as high as expected.

implementing accounting for impairment of TFA in Vietnam in particular

Therefore, there were not enough responses to carry out quantitative

and that of assets in general. However, when Vietnam issues and

research. At the time of this study, the accounting for impairment of

implements accounting for impairment of TFA, new studies might follow

TFA was quite new in Vietnam. Thus, despite the author’s great efforts,

the approaches in the world

this dissertation cannot avoid out-of-date points when it is released. This

regulation and analyzing the relationship between recording decision of

results from the fact that Vietnam’s accounting is improving, completing

asset impairment and business management quality.

and integrating into international accounting; its new accounting policy
is being continuously amended and added. The accounting transaction
for impairment of TFA is complicated with enterprise’s estimation and
causes various arguments. Therefore, although suggested proposals in
this dissertation were consulted from key people in the economy, it is
certain that they cannot satisfy with some contents given by the author.
Concerning the survey, at first, the author determined to use the

such as analyzing the compliance of