Các nhân tố tác động đến áp dụng chuẩn mực kế toán quốc tế (IAS IFRS) tại việt nam – nghiên cứu ở phạm vi quốc gia và doanh nghiệp tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
-------

By

LE TRAN HANH PHUONG

FACTORS AFFECT THE ADOPTION OF THE INTERNATIONAL
ACCOUNTING STANDARDS (IAS/IFRS) IN VIETNAM –
RESEARCH ON NATIONAL AND COMPANY LEVEL

MAJOR:

ACCOUNTING

CODE:

9340301

SUMMARY OF PHD THESIS

PROFESSIONAL ADVISOR
Asso.Prof., PhD. HA XUAN THACH

HO CHI MINH CITY - 2019


Thesis is prepared at: University of Economics Ho Chi Minh City

Professional advisor: Asso.Prof., PhD. Ha Xuan Thach

Critic 1:

Critic 2:

Critic 3:

The thesis will be presented to the Thesis committee at:
At …, the

day

month

The thesis can be found in Library:

year


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INTRODUCTION
1. Research ideal
In the bias of market globalization, international accounting and securities organizations have begun the
harmonization of accounting standards to promote investment, increase economic integration between nations
and area. It is inevitable of using “common accounting language” to help ensuring transparency, clarity,
comparability across the world, and greater utility to facilitate analysts, managers, and investors in making
decisions. Most countries have adopted The International Accounting Standards (IAS/IFRS), but Vietnam has
not yet announced a specific schedule or commitment on the adoption of IAS/IFRS. The Ministry of Finance
have been building a roadmap for accounting and auditing in Vietnam to 2020 in harmonization with
international standards. The updating and promulgation of new accounting standards and regulations related

to accounting systems show that the efforts of the Ministry of Finance to prepare for the implementation of
adoption IAS/IFRS in the future to be favorable and consistent (Tran Quoc Thinh, 2016). It is imperative for
Vietnamese enterprises to adopt The International Accounting Standards (IAS/IFRS) in order to increase the
competition in the world market. The Ministry of Finance has planned to adopt some simple and appropriate
IAS/IFRS for piloting in several large companies (LVC) and units with public interests. The process of
adoption The International Accounting Standards should be researched carefully and the appropriate roadmap
for each type of enterprise in the economy.
International studies have researched the adoption of IAS/IFRS from various perspectives provides a fairly
comprehensive picture of the level of harmonization between national accounting standards and the
International Accounting Standards (Ho Xuan Thuy, 2016). The study focused mainly on developed countries,
while studies on developing countries with characteristics similar to Vietnam are still relatively limited. The
in-country studies focused on the convergence of VAS with IAS/IFRS, benefits and challenges in adoption
IAS/IFRS, assessing the potential and proposing directions for adoption IAS/IFRS in Vietnam. The empirical
studies on the factors that affect the adoption of IAS/IFRS in Vietnam are necessary but have not been properly
addressed. Researches in both the macro and micro factors that affects the adoption of IAS/IFRS have been
done in few countries, especially it is so limited in Vietnam. Two problems need to be focused: in the national
level, is Vietnam eligible for IAS/IFRS adoption? If Vietnam decides to adop IAS/IFRS, can the enterprise
do? This has prompted the author to research the factors affect the adoption of IAS/IFRS in Vietnam - national
and company research. Thus, providing a synchronous and timely solution from the Government State
management, associations and professional organizations, training institutions and enterprises. The subject has
a great scientific and practical significance to provide solution that is appropriate to the current Vietnamese
characteristics - both nationally and company. Therefore, the author decided to implement the topic “Factors
affect the adoption of The International Accounting Standards (IAS/IFRS) in Vietnam – Research on
national and company level”.
2. Research objectives and Research questions.
-

Research objectives: The general objective of this thesis is to identify and measure the factors affect

the adoption of The International Accounting Standards (IAS/IFRS) in Vietnam – Research on national and

company level. In order to solve the general objective, the thesis needs to address two main objectives:


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+ Identify and measure the macro factors that affect the adoption of The International Accounting Standards
(IAS/IFRS) – Research on national level.
+ Identify and measure the macro factors that affect the adoption of The International Accounting Standards
(IAS/IFRS) in Vietnam – Research on company level.
-

Research questions:

(1) What are macro factors that affect of the adoption of The International Accounting Standards
(IAS/IFRS) at national level and How are these factors affected?
(2) What are micro factors that affect of the adoption of The International Accounting Standards (IAS/IFRS)
in Vietnam at company level and How are these factors affected?
To clarify the content of the research question (2), the author raises two questions:
(2a) What are micro factors on the adoption of IAS/IFRS in listed large companies in Vietnam and How
are these factors affected?
(2b) What are micro factors on the adoption of IAS/IFRS in unlisted large companies in Vietnam and How
are these factors affected?
3.
-

Research subjects and scopes
Research subjects: Factors affect the adoption of The International Accounting Standards (IAS/IFRS)

in Vietnam – Research on national and company level.
-

Research scopes:
+ Space research:

A thesis research on macro factors affecting the adoption of IAS/IFRS at the national level. The data is
collected from the list of published IAS/IFRS countries on www.iasplus.com/country/country.htm.
A thesis research on micro factors affecting the adoption of IAS/IFRS in Vietnam at the company level.
The data is collected from the audited financial statement of large companies in Vietnam (LVC) as of
31/12/2016. The basis for the author to select the research space is LVC because, according to experience from
the countries and basing on the roadmap of the Ministry of Finance, the IAS/IFRS adoption in the early years
usually takes place at listed companies, LVC. The reason is that the resources of LVC when adopt IAS/IFRS
have more advantages in terms of finance, human resources, technology, professional level. Next, the author
researched the micro factors that has affected the adoption of IAS/IFRS into two groups of LVC in the
economy: LVC are listed on the Stock Exchange; LVC are unlisted.
+ Period research: data is collected in 2016.
+ Research Limitation:
• The thesis has not focused in the content of each IAS/IFRS.
• The thesis has not investigated the decision to adopt IAS/IFRS to the national accounting system.
• The thesis has not researched on SMEs in Vietnam.
4. Research methodology
The author uses mixture of qualitative and quantitative methods in this thesis.
The thesis used a combination of research methodologies to solve the objectives in the order that the
qualitative methodology was first adopted and then quantitative methods to re-examine the research model:


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-

The qualitative research helps identify the factors that affect the adoption of IAS/IFRS in Vietnam.

Through the literature review processing, the author used the GT method for in-depth interviews with experts.

Expert survey helped to identify the macro and micro factors affecting IAS/IFRS adoption in Vietnam at
national and company level, provide hypothesis and research model.
- The quantitative methods help to measure the impact of these factors on the adoption of IAS/IFRS in
Vietnam - national and company research. The author collects primary and secondary data on the logit
regression model.
The research process of thesis as below:
Research objectives

Research question (1)

Mixed method
- The qualitative research: (GT) Through a
survey of 15 experts with semi-structured
questionnaires.
- The quantitative methods: the logit
regression model from secondary data of
145 countries.

Research results and discussion at the
national level

Research question (2)

Mixed method
- The qualitative research: (GT) Through a
survey of 15 experts with semi-structured
questionnaires.
- The quantitative methods: the logit regression
model from data of audited financial statements
of 500 LVC.

Research results and discussion at the
company level

Conclusion and Recommendation
(Source: As proposed by the author)
5. New contributes of thesis

-

Theoretical implications:

+ Building a model of macro factors and the impaction of these factors that affect the adoption of
International accounting standards (IAS/IFRS) in Vietnam. Especially the country has a system
of code law like Vietnam.

+ Building a model of micro factors and the impaction of these factors that affect the adoption of
International accounting standards (IAS/IFRS) in large companies of Vietnam. The thesis
implements new micro factors. The results are references to the following relevant studies.

-

Empirical implications:

+ The Vietnamese Ministry of Finance, Government management departments: Through policy
implications from the research results of the thesis, The Vietnamese Ministry of Finance,


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Government management departments have issued policies to influence the macro factors to

facilitate the adoption of The International Accounting Standards in Vietnam.

+ The Association, the institutes, institutions, universities specialized in accounting and auditing:
The thesis is research paper of micro and macro factors affecting the adoption of The
International Accounting Standards in specific conditions in Vietnam. This document is
comparable to previous studies to develop current accounting research in the adoption of The
International Accounting Standards in countries, especially developing countries with similar
conditions with Vietnam.

+ Large companies in Vietnam: Identify the micro factors affecting the adoption of The International
Accounting Standards, which provide management implications; facilitate the adoption of The
International Accounting Standards in accounting systems; gain benefits from the process of
economic integration.
6. Thesis structure
The thesis is divided in five chapters. Introduction; Chapter 1– Literature review; Chapter 2–Theoretical
basis; Chapter 3–Research method, Results and discussion on macro factors that affect the adoption of The
International Accounting Standards in Vietnam – Research at national level; Chapter 4– Research method,
Results and discussion on micro factors that affect the adoption of The International Accounting Standards in
Vietnam – Research at company level; Chapter 5 – Conclusion and Recommendation.
CHAPTER 1 – LITERATURE REVIEW
1.1. Researches on The International Accounting Standards in the world.
1.1.1. Studies support the adopton of IAS/IFRS to national accounting standards
1.1.1.1 Research on the benefits of adopting IAS/IFRS in countries
Researches proved many benefits for countries as they adoped IAS/IFRS (Appendix 1.1):
The development of global accounting and taxonomy has been used to improve the quality of information
on financial statements such as comparability, transparency, timeliness and relevance. Therefore, many
countries intend to adopt IAS IFRS or IFRS converge with IAS/IFRS (Larson and Street, 2004; Daske and
Gebhardt, 2011; Aisbitt, 2006; Mary E. Barth et al, 2008; Vera P, 2014; Phan Thi Hong Duc, Nguyen Thanh
Ha, Nguyen Thi Phuoc, 2016;).
To attract capital and enhance business cooperation opportunities, increase competition and integrate into

the world market. The company significantly reduced the cost of issuing bonds, raise capital due to higher
credit index. (Saudagaran & Diga, 2003; Young and Guenther, 2003; Phan Thi Hong Duc, 2013; Tran Quoc
Thinh, 2016…).
Improving business efficiency, improve the quality of management and information; Accuracy of forecasts
is increasing (Ashbaugh and Pincus, 2001); Facilitate comparison between the companies operating in the
same market (Whittington, 2005; Mai Thi Hoang Minh, Tran Ngoc Hung, Bui Quang Hung, 2016), Help
improve the quality of accounting and internal control system of the enterprise (Christopher W. Nobes and
Christian Stadler, 2014).


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Reflecting the value of the enterprise is more reasonable. Horton and Serafeim (2010) showed that adopton
of IAS/IFRS increased the value of companies in the UK, France and Italy. Aubert, Grudnitski (2011) identify
differences in ROA of the companies by IAS/IFRS and LGAAP in Belgium, Finland, France, Italy,
Netherlands, Sweden, Switzerland, and the UK.
Helping countries save money on drafting, promulgating technical documents and quickly integrating into
IAS/IFRS (Leuz, 2003; Daske et al, 2008,); Improve the quality of human resources in accounting, auditing
and finance (E. T. De George, Xi Li, L. Shivakumar, 2016).
1.1.1.2. Research on the implications of adopting IAS/IFRS
Impact on Assets and Equity: Most studies document the positive impact of adopting IAS/IFRS on assets
and equity in the Corporate Financial Statements, such as: Aisbitt (2006), Hung & Subramanyam (2007),
Lenormand and Touchais (2009), Joseph, Ran and Haim (2010) … However, some studies suggest that the
adoption of IAS/IFRS negatively impacts equity and equity, such as Jermakowicz (2004), Marchal et al.
(2007), Christensen et al. (2015), …
Impact on Profit Management Behavior: Most studies have documented the positive impact of adopting
IAS/IFRS on corporate profit-taking behavior and at the same time recording losses in a timelier manner: Barth
et al, (2011), Susana C. G., Cristina F. G. J. I. J., José A. L. Gadea (2010), …
Impact on the quality of financial accounting information of countries: Chamisa (2000), Armstrong et al.
(2010), Shu-hsing Wu et al. (2014), … However, some studies have shown that the adoption and compliance
of IAS/IFRS of different businesses is different, so the quality of information on the explanations is very

different such as Verriest et al (2013), Achilleas Psaroulis (2011), …
Impact on stakeholders such as investors, auditors, banks .... Investors support the process of adopting
IAS/IFRS when they are aware of the net profit earned after the adoption of IAS/IFRS. (Mary E. B., Wayne
R. L., Mark H. L., 2008; Vazakides,…). IAS/IFRS adoption has a positive impact on banks by increasing the
quality of information after the introduction of IAS/IFRS or the increase in auditing quality. (Kishan, 2014)
Impact on debt markets of countries: in particular capital structure and cost of debt of the company (Tran
Thi Thanh Hai, 2015; Naranjo et al., 2014; Florou and Kosi, 2015;...).
1.1.2. Studies does not support the adop of IAS/IFRS
Each nation's environmental difference is a barrier to the adoption of IAS/IFRS: lack of political will, rooted
in local culture, and strong national will. (Larson and Street, 2004; Callao et al., 2007; Phan Thi Hong Duc,
Nguyen Thanh Ha, Nguyen Thi Phuoc, 2016;...)
Difficulties of the enterprise when adop IAS/IFRS due to complex nature of the standard, lack of guidance
when adopting reality, close link between financial statement and tax, frequent changes of IAS/IFRS, lack of
knowledge of employee (Larson and Street, 2004; Ihab A. and Nedal S., 2013;...). Cost-benefit analysis for
changing reporting regimes is controlled by environmental factors. Conversion costs are a concern (Hail et al.,
2010, Le Van Tan, 2016;).
Difficulties from resources for IAS/IFRS adoption, especially in developing countries: Human resources
and accounting systems in developed countries are not strong enough to adop IAS/IFRS (Lasmin, 2011); It is


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difficult to adopt the ability to evaluate and judge professionally (Cătălina F. P., 2016); it is not synchronized,
lack of current legal guidance if IAS/IFRS adoption. (Dao Thi Loan, 2016).
Protecting Investors: IAS/IFRS adoption accepts that regulators are concerned about uncontrolled
accounting information, not protection of investors. (Ehoff and Dahli, 2014; Ball, 2006;...)
Costs for IAS/IFRS adoption: adoption IAS/IFRS in company requires time, effort and cost similar to
previous standards building or even more. (Ashbaugh and Pincus, 2001; Bae et al., 2008; Callao et al., 2007;...)
IT system: Companies need to build IT systems when adopting IAS/IFRS to support the processing,
collection and presentation of financial information from department and outside. (Pham Quoc Thuan, 2016).
1.2. A review of factors affecting the adoption of IAS/IFRS.

1.2.1. Macro factors affect the adoption of IAS/IFRS
The adoption of IAS/IFRS in the country is not the same due to macro factors: culture, economy, capital
markets, education, foreign operations, law, politics …
In the process of formation and development, countries and regions have established and shaped their own
characteristics. These traits can basically come from the business, legal, and cultural environment. It is the
factors from the environment which have influenced the accounting system of countries and created certain
differences, forming diversity and richness in international accounting. (Tymothy and Hector, 2007; Alia and
Branson, 2010, Nguyen Thi Thu Phuong, 2014;...). Diversity in national accounting comes from the economy
(Cooke and Wallace, 1990; Larson, 1993; Tran Quoc Thinh, 2016;.), politicial (Kossentini and Othman, 2011;
Baker et al., 2007;...), law (Kantor et al., 1995) And taxes, business, occupation, and environmental factors are
always intertwined and intertwined (Choi and Meek, 2011; Kim and David, 2009;...)
1.2.2. Micro factors affect the adoption of IAS/IFRS
Most studies of micro factors affect the adoption of IAS/IFRS in enterprises conducted in specific countries.
The authors find that the adoption is mainly determined by the size of the company together with the opinion
of the auditors such as: Trembley (1989), Leuz and Verrechia (2000), Affes and Callimaci (2007). Dumontier
and Raffournier (1998), Odia (2016) has demonstrated the relevance of IFRS voluntary adoption to debt and
performance ratios. Vinícius Simmer de Lima et al (2018) given that economic efficiency in accounting
convergence in a developing economy, the results indicate that the promotion of the enterprise level is an
important driver of compliance with IAS/IFRS.
1.2.3. Mixed studies on macro and micro factors affecting the adoption of IAS/IFRS
The study of the macro and micro factors affecting the adoption of IAS/IFRS in the world is quite limited.
A typical case study of the combined impact of micro and macro factors at the same time in the model to the
IAS/IFRS such as: Kolsi and Zehri (2013), Masoud (2014),...
A composite study of factors affecting the adoption of IAS/IFRS in countries at Appendix 1.1 and 1.2.
1.3. Review previous studies and Identification of research gap
1.3.1. Review previous studies
Most of the research focused on understanding the status of developed countries when adopting IAS/IFRS
such as EU, Australia, Japan, etc. These countries have financial markets and regulatory systems that have
developed. Recently, some of the authors investigated in depth the factors that affect the adoption of IAS/IFRS

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in transition economies. (Rahman et al., 2005). Few studies investigate the adoption of IAS/IFRS in countries
with similar economic, cultural and social characteristics. Therefore, the process of adopting IAS/IFRS in
Vietnam should be considered.
Most of the studies focused on macro factors affecting the adoption of IAS/IFRS in countries, with
particular focus on developed countries. The rest of the research is related to microscopic factors affecting the
adoption of IAS/IFRS. Research samples are usually listed companies, businesses with public interests. For
the past five years, the author has begun to look at the impact of micro factors on the adoption of IAS/IFRS in
emerging countries. However, the research is still limited, especially in relation to developing countries in the
ASEAN region which have similar characteristics to Vietnam.
Research in Vietnam to date has not fully addressed the adoption of IAS/IFRS. The authors mainly use
qualitative methods from literature review, situational assessment and VAS convergence. With IAS/IFRS, the
difficulty in adopting IAS/IFRS in Vietnam, the need and adoption of IAS/IFRS, and the proposed approach
and roadmap for Vietnam. (Le Vu Truong, Dinh Minh Tuan, 2016). The authors have not demonstrated
specifically how the quantitative and micro, macro factors will affect the adoption of IAS/IFRS in Vietnam.
This complex issue should be considered with caution. Empirical factors affecting the adoption of IAS/IFRS
in Vietnam are mainly focused on macro factors (Tran Quoc Thinh, 2016; Duong Hoang Ngoc Khue, Nguyen
Thi Ngoc Oanh, 2016; Nguyen Thi Thu Phuong, 2014). Empirical research on micro factors affecting the
adoption of IAS/IFRS in Vietnam is limited (Ha Xuan Thach, Nguyen Ngoc Hiep, 2017). Particular attention
that the researches on both macro and micro factors affecting of IAS/IFRS in Vietnam was not implemented.
1.3.2. Identification of research gap
The above overview shows that Vietnam has to adop IAS/IFRS as an indispensable trend. However, the
roadmap, method of adopting IAS/IFRS in Vietnam has not been clearly defined and informed. Starting from
this situation, researching the factors affecting the adoption of IAS/IFRS is very necessary and has deep
scientific and practical significance, thus providing an orientation to develop appropriate solutions. From this
perspective, the author selects and performs the topic “Factors affect the adoption of The International
Accounting Standards (IAS/IFRS) in Vietnam – Research on national and company level”.
Conclusion chapter 1
CHATER 2: THEORETICAL BASIS

2.1. Overview of The International Accounting Standards (IAS/IFRS).
2.1.1. Brief history of IAS/IFRS formation
In the years 1973 - 2000, IAS/IFRS published accounting principles and guidelines. Since 2001, IASB,
IOSCO and accounting agencies around the world have formed and developed IAS (International Accounting
Standards), including International Financial Reporting Standards (IFRS).
2.1.1.1. Stage formation (from 1973 to 1987)
The IASC issued 26 IAS/IFRS to narrow the differences between countries' accounting by adopting the
accounting standard to allow for more flexible options to suit country conditions (Deloitte Touche, 2002-2007).
IASC did not respond to user information, lacking detailed regulations on financial statements. Allowing
multiple options does not guarantee comparability of financial statements.


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2.1.1.2. Adjustment period (from 1987 to 1993)
In 1987, IOSCO requested the IASC to renew its accounting standards on the basis of: removing multiple
options; Ensure full standards of detail as well as requirements on financial statement presentation. By 1993,
10 of the 31 IASs had been adjusted. Then the IASC agreed with IOSCO to develop IASCO's IAS/IFRS and
recommended the stock market to be used.
2.1.1.3.

Development period (from 1993 to present)

The development phase marks two important processes: the period 1993 - 2001 marked the IASC
reengineering process for the establishment of the IASB, the period from 2001 to the present is the process of
accelerating the development and adopting IAS/IFRS globally. The adoption of IAS/IFRS has changed the
way financial statement measurement, recording and presentation help the company to be accepted on the
world stock market because of improved quality of information provided to investors, increasing the ability
Comparisons of financial information, reduced uncertainty in investment, increased market efficiency, reduced
investment risk and reduced capital costs, helped expand global stock markets.
2.1.2. Content of IAS/IFRS

IAS/IFRS was developed in the direction of capital markets and the formulation of financial statements
focused on corporate relations with investors and information on the capital market. State agencies still use
financial statements as economic activity, financial statements for the purpose of investors. IASB consists of
three main parts: IFRS Framework, IAS/IFRS and IAS/IFRS Interpretation Guidelines and IAS/IFRS
Interpretation Guidelines (IFRIC/SIC) developed by IFRIC. public opinion and then submitted to the IASB
Board for review and approval as official guidelines (IFRS Foundation, 2012)
2.2. Method and experience of adopting IAS/IFRS in countries.
2.2.1. Method of adopting IAS/IFRS in countries
2.2.1.1. Method 1: Recognition of IAS/IFRS is the national accounting standard (Big Bang
Approach)
The Big Bang Approach is understood as the country where the companies are required to start adopting
IAS/IFRS at specific times or at different times for different size of the companies. Any updates and changes
in IAS/IFRS will be effective for the adoption country. The methodology allows for the highest level of
compliance with IAS/IFRS and minimizes the risk of discrepancies when preparing and presenting information
on the financial instrument, saving a lot of time and energy for the countries themselves. IASB, IFRS
Foundation, ... in preparation and adoption of IAS/IFRS. In Asia, countries with similar conditions with
Vietnam such as the Philippines or Singapore choose this method.
2.2.1.2. Method 2: Approve each IAS/IFRS (Convergence Approach)
This method of permitting changes in IAS/IFRS will be considered for individual approval of each standard.
The country chooses to adop the IAS/IFRS at the level that it considers appropriate, thereby transferring the
content of each IAS/IFRS to the national accounting standard.
The limitation of this approach is to reduce the comparability of the financial statements or to keep up with
changes in actual business operations in the current market mechanism. This is the transitional solution that
the country will then move on to adopting method 1.


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2.2.2. Experience of adopting IAS/IFRS of countries around the world.
The thesis presented the variety of methods as well as the experience of adopting IAS/IFRS in countries in
terms of developed and developing countries, using IAS/IFRS accreditation as standards. National accounting

or approval of each standard, support and opposition to the adoption of IAS/IFRS. Selected developed
countries are the EU, Australia, USA and Korea (section 2.2.2.1). Selected developing countries are China,
Malaysia, and Thailand. This is an Asian country, with relatively similar economic conditions (section 2.2.2.2).
As a result, lessons learned from the adoption of IAS/IFRS have been implemented in countries because of the
benefits gained from this process. However, each country needs to overcome challenges in adopting IAS/IFRS,
and learn from experience to develop the most appropriate and effective roadmap (section 2.2.2.3).
2.3. Background theories.
The thesis presented the backgrounds theories: Agency theory, Corporate Governance theory, Signal
theory, Institutional theory and Political theory.
2.4. Factors affecting the adoption of IAS/IFRS.
2.4.1. The macro factors.
The PESTEL model describes the macro environment as "broad, objective and direct impact factors that
are organized and analyzed into six dimensions: political, economic, cultural, technical, and frameworks. legal
and environmental”. Many studies proved the importance of these factor to the adoption of IAS/IFRS. The
author examines the impact of macro variables on the IAS/IFRS adoption: culture, legal systems, education,
politics, foreign operations, economic growth and capital markets. (Appendix 2.3)
2.4.2. The micro factors.
Micro environment is the near or direct environment of the company and is very special by being unique to
every company or industry. This environment directly impacts on the company. The dissertation examines the
impact of a number of micro factors including: leverage, enterprise size, profitability, auditing quality, impact
on IAS/IFRS adoption (Appendix 2.3).
Conclusion chapter 2
CHAPTER 3: RESEARCH METHOD, RESULTS AND DISCUSSION ON MACRO FACTORS
THAT AFFECT THE ADOPTION OF THE INTERNATIONAL ACCOUNTING
STANDARDS – RESEARCH AT NATIONAL LEVEL
3.1. Select the appropriate research method
3.1.1. Determine the research method
The thesis used a composite mix design that are presented in Figure 3.1.
3.1.2. Research process
Step 1: Document overview, defining theoretical foundations and background theories for research.

Step 2: Qualitative research methods
The thesis used GT (Grounded Theory) for interviewing 06 experts (Appendix 3.1) by semi-structured
questions. Expert Interview Questions (Appendix 3.2) identifies macro factors as the basis for a formal survey
of 15 experts (Appendix 3.3).
Step 3: Quantitative research methods


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The thesis examines and quantifies the relationship between factors through the verification tool and the
logit regression model. Secondary data collected from www.iasplus.com, World Development Indicators
(WDI) at Appendix 3.5.
Step 4: Research results, Discussion and policy implications
The research process is described in Figure 3.2.
3.2. The qualitative research
3.2.1. The qualitative research process
GT is a methodology for constructing theories based on systematic data collection and analysis, and
qualitative research processes are shown in Figure 3.3.
3.2.1.1. Setting up the survey
Step 1: Expert interviews to build the main survey questions (Appendix 3.2)
Step 2: Survey experts (Appendix 3.3)
3.2.1.2.S ample selection
Step 1: Select the sample in the interview
The author selected 06 interview experts including: 03 lecturers and 03 accountants in companies
(Appendix 3.1).
Step 2: Select the sample in the expert survey
After determining the survey, the author sampled for the purpose of the GT method.
Number of samples
Group 1: Representatives of agencies issuing national standards, policies and regulations and professional
associations: about 1 - 2 persons
Group 2: Accountants in the companies: 6 people, of which 3 people in listed LCV and 3 people in unlisted

LCV.
Group 3: Representatives from the Securities and Exchange Commission or Auditor: about 1 - 2 persons.
Group 4: Researchers, lecturers, directors of companies: 6 persons: 4 directors (2 directors in listed LVC
and 2 directors in unlisted LVC) and 02 Researchers, lecturers who has knowledge in IAS/IFRS.
3.2.1.3. Data collection
The data collection tool is a surveys (Appendix 3.3)
3.2.1.4. Analysis of data
Step 1: Data analysis for expert interviews
Step 2: Data analysis for expert survey
3.2.2. The research model expected
Based on the theory of background combined with expert surveys, the author proposes a research model
in Charter 3.4.
3.2.3. Research hypothesis
Hypothesis H1. Countries with Anglo-Saxon culture are more potential to adopt IAS/IFRS than other
countries.
Hypothesis H2 – The higher economic growth of country, the more inclined to adopt IAS/IFRS.


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Hypothesis H3 – Countries have capital markets are more likely to adopt IAS/IFRS.
Hypothesis H4 – The higher level of the educational system of country, the higher the country will adopt
IAS/IFRS
Hypothesis H5 – Countries have higher level of opening foreign listing are more likely to adopt IAS/IFRS.
Hypothesis H6 - Countries have a "common law" legal system are more likely to adopt IAS/IFRS than
others
Hypothesis H7 - Countries with higher democratic political systems tend to adopt IAS/IFRS.
3.3. Quantitative research
3.3.1. Quantitative research procedures
Quantitative research procedures has presented at Diagram 3.5
3.3.2. Model research

LOGIT [IAS/IFRS =1] = α0 + α1*VH + α2*TT + α3*TV + α4*GD + α5*NN + α6*PL + α7*CT +ε

(M1)

Dependent variable is a dummy variable, assuming a value of 1 if the country adopts IAS/IFRS and a value
of 0 if the country does not adopt IAS/IFRS until 2016
Independent variable: Culture VH Economic growth TT Capital markets TV Educational system GD
Foreign operation NN Legal system PL Political system CT
Parameters: α0, α1, α2, …, αn

Error: ε

3.3.3. Determine the scale
Measurement scale is presented at Appendix 3.9
3.3.4. Select sample survey
The number of macro variables is 07 variables, the number of independent variables is 1 variable. The
official sample size of n = 145 is consistent. The author selects non-probable samples because the constraint
in the secondary data collection process for information concerning the country is not favorable. Samples are
conveniently sampled because of the convenience of data collection and objective assurance in the data
collection of non-probability sampling.
3.3.5. Data collection.
The thesis collect data of countries from website www.iasplus.com/country/country.htm. After considering
the possibility of data collection, the author selected 145 countries to be classified into two groups: countries
that have adoped IAS/IFRS (with or without modification) and group of countries by the end of 2016, do not
adop IAS/IFRS. Relevant information is collected primarily from the World Bank - World Development
Indicators (WDI). List of these countries presented at Appendix 3.5. Source of data collection factors presented
at Appendix 3.9.
3.3.6. Data analysis.
3.3.6.1. Descriptive statistics analysis
Descriptive statistics analysis with quantitative macro variables in the model KT, GD, NN, CT. Descriptive

statistics analysis with qualitative macro variables VH, TV, PL.


12
3.3.6.2. Regression analysis
a. Univariate analysis
Univariate analysis identifies the impact of each macro variable on the adoption of IAS/IFRS. The thesis
compares two groups: the IAS/IFRS country group and the non-IAS/IFRS country group by the end of 2016.
The author proceed the Kolmogorov-Smirnov test, Mann-Whitney test and the Correlation matrix for
macroeconomic variables
b. Multivariate analysis
Multivariate analysis examines the impact of macro factors on the adoption of IAS/IFRSby logistic
regression. Verify the Wald to verify the regression coefficient. Next, test the fit of the model through accurate
level prediction testing (Classification Table) and the suitability of the model (Omnibus test).
3.4. Research Results and Discussion
3.4.1. Research Results
3.4.1.1. Results of qualitative research
Expert Interview Results
➢ Step 1: Based on the literature review, the author presents seven macroscopic factors affecting the adoption
of IAS/IFRS in terms of concepts, terminology, background theory, and related research (Appendix 3.2).
The results of interviews show that experts agree (100%) on the seven macroeconomic factors affecting the
adoption of IAS/IFRS, including: Culture, Economic Growth, Capital Markets, Education, Foreign affairs,
Law, Politics.
➢

Step 2: The results of statistical analysis from the expert opinion on the measure of factors affecting the
adoption of IAS/IFRS are presented in Appendix 3.7.

➢

Step 3: Finally, the author interviews with open-ended questions to add to the macroeconomic factors that
affect the adoption of IAS/IFRS and factor scales (Appendix 3.6) less than 20%. The author considers the
possibility of collecting data in the next quantitative study is not feasible. Therefore, the author does not
add new macro factors proposed by experts in the official survey.

➢

Step 4: Macro factors selection and scale entered into expert survey.
Results from expert survey
Survey results show that 100% of experts agree with the macroeconomic factors and scale in the survey. In

addition, experts do not add a factor or scale (Appendix 3.9)
In conclusion, by the end of qualitative research, the author identifies 7 factors that influence the adoption
of IAS/IFRS: Culture, Economic Growth, Education, Politics, Law, Activity offshore and capital markets.
3.4.1.2. Results of quantitative research
Descriptive statistics of the macroeconomic variables
Economic growth have the average 518,726.3424 million USD with a minimum of 581,48 million USD
(Dominican Republic) and a maximum of 18.624.475 million USD (USA). Educational system (GD) is
presented by literacy rate. Countries have a literacy rate of 85.9% on average. The average of Gastel index of
Political system variable (CT) is 3.39 which means that the countries in samples are characterized by a medium


13
level of political freedom. Foreign listing variable (NN) is determined by the FDI/GDP ratio of 145 countries
in 2016 that showing the average of this ratio in the sample 3.78%.
6.9% of countries in our samples have Anglo-Saxon culture, 113 countriesdon’t have capital markets
(77.9%) and 17 countries have the common law (11.7%).
Univariate analysis:
a. Kolmogorov-Simirnov test
Kolmogorov-Simirnov test shows that the data is not normal because the value of Sig. < 0.05.

b. Mann-Whitney test
The results show that VH, GD, CT have difference between the two groups (Sig.< 0.05). The average
indicates that the countries in which have adopted IAS/IFRS is characterized by Anglo-Saxon culture, a high
level of education and a democratic political system than those of non-IAS/IFRS countries. These factors such
as TT, TV, NN and PL did not significantly differ between the two groups.
c. Correlation matrix for macroeconomic variables
Correlation of independent variables with dependent variable IAS/IFRS shows that TV, NN and PL
variables have Sig> 0.05 which means that the three variables are excluded from the model (M1). Sig value of
TV – GD is 0.042 < 0.05, so two variables are correlated. Similarly, Sig value of PL - VH, TT is less than 0.05.
Therefore, that is suitable to eliminate the TV, NN and PL variable. In conclusion, based on the Univariate
analysis for macroeconomic variables, it can be concluded that countries adopt IAS/IFRS are characterized by
a highly democratic, highly educated and Anglo-Saxon culture.
Multivariate analysis
The thesis uses logistic regression for the model (M1), the dependent variable is the dummy variable which
will receive the value 1 if the country adoped the IAS/IFRS until the end of 2016 or the value 0 if the country
did not adop IAS/IFRS. The remaining independent variables matched the model (M1) after performing
correlation testing: VH, TT, GD and CT. The results of logistic regression are shown in Table 3.4
Logistic regression of the model (M1) is estimated as:
Ln (p/(1-p)) = -0.188 + 2.13 * VH + 0.016 * TT + 0.037 * GD – 0.279 * CT
a. Test of regression coefficients (Waldtest)
The Wald test shows that the VH, TT, GD, CT variables in the model (M1) have Sig. value less than 0.05.
It means that the relationship between the dependent variable IAS/IFRS and the independent variable is
statistically significant with a confidence level of over 95%. Therefore, the VH, TT, GD, CT variables are
relevant and significant for the model (M1).
b. The influence of the variables
In the variables affecting the ability to IAS/IFRS adoption in countries, the VH variable has the strongest
influence, and the remaining ones are GD, TT and CT with the lowest effect.
c. The level of accurate forecasting of the model
-

Classification Table

The correct forecasting rate for the entire model of 87.6%. This ratio is high indicating that the model's
prediction level is quite accurate.
-

The suitability of the model (Omnibus test)


14
Omnibus Test has Sig. value < 0.05. So, the model shows that the correlation between IAS/IFRS variable
and independent variables is statistically significant with a confidence interval greater than 95%. In other
hands, (M1) was suitable.
-

The level of interpretation of the model (-2 Log likelihood)

The value of -2 Log likelihood in Table 3.7 shows the level of explanation of the model (M2) is 86.029.
The smaller the number is, the better the pattern is. The -2-log likelihood value is low, so it has good
explanations with the overall model (M1)
3.4.2. Discussion
The results show that TV, NN and PL variables have no significant impact on the adoption of IAS/IFRS. Countries
adopting IAS/IFRS do not rely on the existence of capital markets, foreign operations and law. VH, GD, TT and CT
have a significant impact on the decision to adop IAS/IFRS. Meaning that the countries adopting IAS/IFRS to AngloSaxon countries, on the basis of economic growth, development education, and democratic political system.
Conclusion chapter 3
CHAPTER 4: RESEARCH METHOD, RESULTS AND DISCUSSION ON MICRO FACTORS
THAT AFFECT THE ADOPTION OF THE INTERNATIONAL ACCOUNTING STANDARDS IN
VIETNAM – RESEARCH AT COMPANY LEVEL.
4.1. Selection of research methods
4.1.1. Determine the research method

The author solves the second research objective of the thesis through the exploratory research
methodology in order to overcome the disadvantages of quantitative research methods and qualitative
research methods (Figure 4.1)
4.1.2. Research process
The process of studying the mixture goes through four steps, which are described in detail in Figure 4.2.
Step 1: Document overview, defining theoretical foundations and theoretical background for the study
Step 2: Qualitative research methods
The research was designed as a natural exploration, exploring ideas for further consultation and further
exploring the micro-factors that affect the adoption of IAS/IFRS in the corporate context, particularly in typical
context of large companies in Vietnam. The interviewer as presented in 3.1.2.
Step 3: Quantitative research methods
Micro factors determinants were identified after qualitative research, the authors tested and quantified the
relationship between these variables through logit regression tools and models. Data collected through audited
finance statement of LVC (Appendix 4.1). The topic examines the impact of micro factors on two major LVC,
including listed group and unlisted group.
Step 4: Research results, Discussion and policy implications
Charter 4.2: Process of micro factors affecting IAS / IFRS adoption in LVC

STUDY OVERVIEW
IAS / IFRS, micro factors affecting the adoption of
IAS/IFRS in LVC

THEORY
IAS/IFRS, processes and methods of
adopting IAS/IFRS, micro factors
affect the adoption of IAS / IFRS in
company level, background theory


15

QUALITATIVE RESEARCH
- Purpose: determine the impact factors
- Research Methodology: GT (Grounded Theory)
- Research tools: Survey
- Data collection tools: semi-structured questions
- Beneficiaries: Representative of the standard issuing body
and policy; Director of the auditing enterprise,
representative of the association and professional
organization; Corporate Director, researcher, expert
teaching in the field of accounting and auditing.
- Sample: n = 15

Regression correlation
Model testing and
research hypothesis

Expected Factor
Adjusted
Micro Factor

QUANTITATIVE RESEARCH
- Purpose: Measurement of microscopic factors affecting the
adoption of IAS/IFRS, verification and quantification of factors.
- Data collected: secondary data
- Analytical tools: statistical analysis, regression analysis
- Sampling method: Select non-probability sample by convenient
method
- Sample size: n = 500

RESULTS OF RESEARCH, DISCUSSION AND IMPLEMENTATION
- The results of the micro-factors test, compared with the previous study
- Discussion, implication
4.2. The qualitative research
4.2.1. Qualitative research process
4.2.1.1. Setting up the survey
Step 1: Expert Interviews for the survey (Appendix 3.2)
Step 2: Survey of Experts (Appendix 3.3)
4.2.1.2. Study sample selection
The sample selection process is described in detail in section 3.2.1.2.
4.2.1.3. Data collection
The data collection tool is the Survey Sphere (Appendix 3.3).
4.2.1.4. Analysis of data
Step 1: Analyze data for expert interviews
Step 2: Analyze data for expert survey
The author analyzed the data from the survey of 15 penguin statistical methods described. Micro factors
that do not achieve more than 20% consensus will be analyzed and discarded from the expected model. The
author chooses the most consensus scale or scale that can best capture the data.
4.2.2. The research model expected
The results of the survey are the basis for the addition of three new microelements to the research model
in Figure 4.4.


16
4.2.3. Research hypothesis
Hypothesis H8 – Companies that were listed on foreign markets are more likely to adopt IAS/IFRS than
others.
Hypothesis H9 – The companies have the higher the debt-to-equity ratio, the more likely to adopt IAS/IFRS.
Hypothesis H10 – The larger the company's foreign investment is, the more likely to adopt IAS/IFRS
Hypothesis H11 – Companies have foreign loans are likely to adopt IAS/IFRS.

Hypothesis H12 – Companies have the higher levels of foreign participation in management, they are more
likely to adopt IAS/IFRS
4.3. Quantitative research
4.3.1. Quantitative research procedures
Quantitative research procedures are presented in Figure 4.5.
4.3.2. The research model
Logistic regression of the model (M2) is estimated as:
LOGIT [IAS/IFRS =1] = β0 + β1 * NYN + β2 * TLN + β3 * DTN + β4 * VVN + β5 * QLN + β6 *
CLK + β7 * QMD + β7 * ROE + ε

(M2)

Dependent variable is a dummy variable, assuming a value of 1 if the LVC adopts IAS/IFRS and a value
of 0 if the LVC does not adopt IAS/IFRS until 2016.
Independent variable: Foreign listing NYN Debt ratio TLN Foreign investment DTN Foreign loans VVN
Foreign management QLN Audit quality CLK Company size QMD Return on Equity ROE
Parameters: α0, α1, α2, …, αn
Error: ε
4.3.3. Determine the scale
Measurement scale is presented at Appendix 4.1.
4.3.4. Select sample survey
The sampling method is the same as in 3.3.4. The number of micro variables included in the analysis is 08
variables, the number of variables depends on one variable. The sample size is n = 500, consistent with the
sample size. The author selects non-probable samples because the process of collecting secondary data on LVC
is not favorable, especially audited financial statements of LVC are not listed on the stock exchange. Samples
were selected according to convenient sampling method as it facilitated the data collection and assurance of
objectivity in the data collection process of the non-probable sampling method.
Large format in Vietnam diversified fields, industries, types of business ... are randomly selected on
www.vnr500.com.vn. The research sample is divided into 2 groups: Group 1 is 250 LVC whose shares are
listed on the Stock Exchange; Group 2 is 250 large unlisted enterprises. Bases for determining the size of large

enterprises are specified by the Government in accordance with Decree 39/2018/ND-CP.
4.3.5. Data collection.
Data is collected from audited financial statements, annual reports of major enterprises on the mass media
(websites, internet, stock exchanges ...), independent auditing companies, banks and financial institutions ... In


17
addition, the author conducts an accounting survey or a director to collect bases on whether LVC adop
IAS/IFRS. (Appendix 4.6).
4.3.6. Data analysis.
4.3.6.1. Descriptive statistics analysis
The quantitative micro-variables TLN, QMD, and ROE used statistical analysis described as mean,
maximum, minimum, and std. Deviation (standard deviation). Qualitative micro-variables NYN, CLK, QLN,
DTN, VVN used descriptive statistical analysis as frequency and percentage.
4.3.6.2. Regression analysis
The thesis researched a multivariate analysis and multivariate analysis. The procedures and bases for
conducting regression analysis are detailed in Section 3.3.6.2. As for the model (M2), the thesis separately
investigated the impact of the micro variables on 2 groups: 250 listed LCV and 250 unlisted LVC. The purpose
of the thesis considered for each LVC, which micro factors have more impact, find out the reasons and propose
the appropriate implications.
4.4. Research Results and Discussion
4.4.1. Research Results
4.4.1.1. Results of qualitative research
Expert Interview Results
➢ Step 1: On the basis of the literature review, the author presents concepts, terms, background theory and
related research on 10 micro elements (in which the author proposes 3 factors) The adoption of IAS/IFRS
in the context of large enterprises in Vietnam. Experts agree (100%) on 10 micro factors affecting the
adoption of IAS/IFRS in large enterprises in Vietnam including: Foreign listing, Leverage, Investment of
the house Foreign Investor Relations, Foreign Participation in Management, Audit Quality, Business Scale,
Profitability, Accounting Level, Accounting Linkage and Taxation.

Step 2: Results of statistical analysis from expert interviews on the 10 micro-scale measurement measures
affecting the adoption of IAS/IFRS in large Vietnamese enterprises are presented in Appendix 4.3. Expert
view when determining the 10 factors.
➢

Step 3: The author uses an open-ended questionnaire to supplement micro-factors and measurement scales
to adopt IAS/IFRS in large Vietnamese enterprises. Experts propose four new micro elements: 1. Support
from the administrator; 2. Enterprise Information System; 3. Auditors' opinions; 4. Profit management.
The expert proposes the scale of four micro variables as Likert scale of 5 points. The results of expert
interviews on the addition of microscopic factors and scales to the adoption of IAS/IFRS in large
enterprises in Vietnam (Appendix 4.2) show that the percentage of experts agree is very low (less than
20%). At the same time, the author considers the possibility of collecting data in the next quantitative
research step is not feasible. Therefore, the author does not add four new elements proposed by experts in
the official survey.

➢

Step 4: Select the microscope factor and the scale entered in the expert survey (Appendix 4.3)


18
Results from the Expert Survey (Appendix 4.4) include eight micro factors impacting the adoption
of IAS/IFRS in large enterprises in Vietnam: Foreign Listing, Leverage, Foreign Investment, Loan
Foreign Participation in Management, Audit Quality, Business Scale and Profitability.
4.4.1.2. Results of quantitative research
a. Descriptive statistics
In the sample of 500 LVC, most of them are multi-business, so the author does not analyze the structure of
the industry.
Company size (QMD) of 500 LVC at 31/12/2016 has an average value of VND 2,198,630,802,760 in which
LVC has the largest assets of VND 72,996,452,507,836 and LVC has the lowest assets of VND

52,763,469,601. Debt ratio (TLN) has an average value of 14.22%. The lowest debt ratio was 0% and the
highest debt ratio was 185.59% The average value of Return on Equity (ROE) is 8.87%. In 2016, the
performance of some LVC is not good with the lowest ROE of -519.43%, while the highest ROE is 238.53%.
Among the 500 LVC, 398 LVC were audited by Big4 (79.6%). This is a good signal for the credibility and
transparency of information on the financial statements of LVC when disclosed outside. However, up to now,
there are no LVC listed on the international financial market. There are many reasons that limit the potential
of domestic enterprises when entering the international financial market. This proves that NYN is a constant
(only a value of 0), so this variable is excluded from the model (M2).
Detailed descriptive statistics of large enterprises of micro factors: QMD, TLN and ROE: Large listed
companies have higher average size than large unlisted enterprises. However, the size gap between the largest
and the smallest is much larger than the LVC listed on the Standard Deviation. The average debt ratio of large
listed companies is much larger than the large unlisted group (5,515%), while the standard deviation is also
higher. Long-term loans represent a large proportion of the total capital of large listed companies.
Table 4.4. Descriptive statistics analysis for 2 groups of LVC: CLK, NH, DTN, VVN. The group of listed
companies outperforms the large unlisted group with the large number of large enterprises audited by the Big4,
with the greater participation of foreign managers in the Board. and attract more foreign investment. Large
corporate listings are audited by Big4 more than making the published financial statements get more trust from
investors. Hence, large listed companies receive more foreign investment than large unlisted company.
b. Univariate analysis
Kolmogorov-Simirnov test
All independent variables in the model (M2) have Sig value. = 0 (<0.05). It indicates that the data is not
normal. So, Mann-Whitney test is used for the next test step.
Mann-Whitney test
DTN, QLN, CLK and QMD have significant differences that affect the IAS/IFRS adoption by LVC with
Sig value <0.05. TLN, VVN and ROE are not significantly different between LVC adopted IAS/IFRS or not.
Specifically, LVC adopted IAS/IFRS are characterized by being audited by Big4, having a larger company
size, receiving more foreign investment, and having foreign manager in senior management than with nonIAS/IFRS adoption LVC. Other microeconomic variables have not presented an effective difference between
the two groups of LVC.

19
In summary, based on the univariate analysis of the microenterprise group, it can be concluded that large
companies adopting IAS/IFRS are often audited by Big4, of a large scale, related to foreign elements.
There are no significant differences between the micro factors of the 2 groups adoped and not in the large
250 unlisted group. This comes from the practice of adopting IAS/IFRS in large unlisted companies.
Test of correlation microeconomic variables
DTN, QLN and CLK correlate with the variable IAS/IFRS (Sig. < 0.05). TLN, VVN, QMD and ROE have
Sig. value > 0.05. This means removing the 3 variables from the model (M2).
In summary, based on the Univariate analysis for microeconomic variables, it can be concluded that
IAS/IFRS adoption in LVC were often audited by Big4, large assets, with foreign investment.
c. Multivariate analysis
Multivariate analysis for 500 large companies in Vietnam
Logistic regression of the model (M2) is estimated as:
Ln (p/(1-p)) = -4.38 + 1.649 * DTN + 0.929 * QLN + 2.73 * CLK
Logistic regression results in three independent micro variables as shown in Table 4.8.
➢

Test of regression coefficients (Wald test)

The independent variables input in the model (M2) have Sig. value less than 0.05, so the relationship
between dependent variables IAS/IFRS and DTN, QLN, CLK variables is statistically significant with more
than 95% confidence level. So, DTN, QLN, CLK are relevant and meaningful to the model (M2).
The influence of microeconomic variables on the dependent variable IAS/IFRS in the model (M2) shows
that CLK has the strongest influence on the ability of IAS/IFRS adoption in LVC, follows by DTN and QLN
have the lowest effect.
➢ The level of accurate forecasting of the model
-

Classification Table

The model predicted 99.4% correct for companies have not yet adopted IAS/IFRS. The model predicts
8.3% correct for companies have adopted IAS/IFRS. Hence, the correct forecasting rate of (M2) is 92.8%. This
rate is very high, which indicates that the forecasting level is quite accurate.
-

The suitability of the model (Omnibus Test)

The value of Sig. < 0.05 shows that the correlation between IAS/IFRS variable and independent variables
is statistically significant with a confidence interval greater than 95%. In other hands, (M2) was suitable.
-

The level of interpretation of the model (-2 Log likelihood)

The value of -2 Log likelihood shows the level of explanation of the model (M2) was 184.566. The smaller
the number is, the better the pattern is. The -2-log likelihood value is not high, so it has good explanations with
the overall model (M1).
Multivariate analysis for large group of 250 listed companies in Vietnam
Logistic regression for the large group of listed companies is estimated as:
Ln (p/(1-p)) = -4.716 + 1.697 * DTN + 2.116 * QLN + 3.393 * CLK (M2a)
➢ Test of regression coefficients (Wald test)
The variables DTN, QLN, CLK in model (M2a) have Sig. <0.05 should be consistent and statistically


20
significant with a confidence level of more than 95%.
➢ The impact of variables is described in detail as follows:
In variables affecting the adoption of IAS/IFRS in LVC, the CLK variable has the strongest impact (similar
to the model (M2), followed by the QLN and the least significant DTN variable. The adoption of IAS/IFRS
for QLN variation, DTN variation of model (M2a) is not much different from model (M2).
➢ Test the fit of the model (M2a)

-

The Classification Table

The model predicts 94.4% correct, which is higher (M2). Demonstrate more accurate forecasting model for
large group of listed companies.
-

The suitability of the model (Omnibus Test)

The Omnibus test shows that Sig. <0.05 indicates that the model (M2a) is statistically significant with a
95% confidence interval and is consistent.
-

The level of interpretation of the model (-2 Log likelihood)

The -2-log likelihood of the model (M2a) is 85.8 is very low, indicating good fit with the overall model.
This index is lower than the model (M2), indicating that this model has a large level of explanation for the
larger listing of the company.
c. Multivariate analysis for 250 large unlisted companies in Vietnam
The results of logistic regression with IAS/IFRS dependent variable for the large group of unlisted
companies according to 3 independent variables are shown in Table 4.16.
Logistic regression for the large unlisted business group is estimated as:
Ln (p/(1-p)) = -4,379 + 2,037 * DTN + 2,404 * CLK (M2b)
➢ Test of regression coefficients (Wald test)
The DTN and CLK of M2b have Sig. <0.05 should be consistent and statistically significant with a 95%
confidence level. The difference is that QLN has Sig. = 0.625> 0.05, indicating that this variable was not
statistically significant for (M2b) for large unlisted companies.
➢ The impact of variables is described in detail as follows: In the variables affecting the adoption of
IAS/IFRS in large unlisted companies, the most powerful CLK variable (similar to tissue The QLN variable is

not statistically significant for (M2b). However, the DTN variable of (M2b) has the probability of adopting the
IAS/IFRS of the companies. Unlisted foreign invested companies and one large unlisted company without
foreign investment compared to the (M2) and (M2a) models are quite different, while the probability of
adopting the IAS/IFRS of a large foreign-invested companies is 36% higher than the other without foreign
investment, 26.63% (M2), the M2a is 27.74%. Demonstrate the role of foreign investment positive impact on
the adoption of IAS/IFRS in large unlisted companies.
➢ Test of the suitability of the model
-

Classification Table

Model (M2b) predicted 94.8% correct, this ratio was higher (M2), (M2a). Demonstrate accurate forecasting
model for large unlisted group. (Table 4.17).
-

The suitability of the model (Omnibus Test)


21
The Omnibus test in Table 4.18 shows that Sig. <0.05 indicates that the pattern (M2b) is statistically
significant with a 95% confidence interval and is consistent.
-

The level of interpretation of the model (-2 Log likelihood)

Value -2 The log likelihood of the model (M2b) in Table 4.19 is 83.053 is very low, indicating good fit
with the overall model. This index is lower than the model (M2), (M2a), indicating that this model has a level
of explanation for the large unlisted firm for the overall fit.
4.4.2. Discussion
The results of accepted theories are presented in Appendix 4.11

Micro variables (NYN, TLN, QMD, ROE, and VVN) have no impact on the adoption of IAS/IFRS. Investors in
the survey team do not base their decision to adop IAS/IFRS on foreign listings, leverage, business size, profitability
or borrowing from abroad. DTN, QLN and CLK factors have a significant impact on the decision to adop IAS/IFRS
of LVC in Vietnam. This implies that LVC are audited by large auditing firms (Big4), receiving foreign investment
and having the management involvement of foreigners in the Board of Directors will have more likely to adop
IAS/IFRS than the rest of the business. Contrary to initial predictions, the NYN variable is constant when no LVC are
listed on the foreign stock market so it does not affect the adoption of IAS/IFRS. This result is different from that of
Raffournier and Dumontier (1998), Murphy (1999), Cuijpers et al (2005), El Gazzar et al. (1999).
The research model is presented in Appendix 4.11.
Conclusion chapter 4
CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1. Conclusion
After conducting research on the topic, some conclusions are drawn as follows:
(1) All research objectives of the thesis are as follows:
- The thesis has built a model of empirical research on factors influencing the adoption of IAS/IFRS in
Vietnam - National and companies research: macroeconomic factors: Economic Growth, Education and
Politics; Group of micro factors: Foreign Investment, Foreign Management and Quality Assurance. The
accuracy of the model is high (over 87%). Therefore the thesis achieves the research purposes.
- The thesis has used the qualitative research, results of document review, interview with 06 experts,
continued surveys from 15 experts who discovered two additional micro factors that impacted the adoption
IAS/IFRS in Vietnam is Foreign Investment and Foreign Management.
- The thesis conducted a logistic regression analysis to test the hypotheses, the results have identified seven
factors, as well as the impact of each factor on the adoption of IAS/IFRS in Vietnam - Research at national
and corporate level. In particular, the author in-depth analyzes the impact of micro factors on two group of
LVC: listed and unlisted LVC.
- The thesis presents implications for stakeholders to promote the process of adopting IAS/IFRS in Vietnam
at the national and company level.
(2) All hypotheses are tested:
Results of the research hypotheses on factors affecting the adoption of IAS/IFRS in Vietnam at the national
and enterprise level show that:

22
- From the viewpoint of national level: a country with Anglo-Saxon culture, with a high level of education,
economic growth and a democratic political system, will be more likely to adopt IAS/IFRS than other
countries. In particular, the cultural factor is the most influential factor in the IAS/IFRS adoption process. This
shows that countries with many similarities in culture can learn from the preceding countries.
- From the viewpoint of company level: LVC are audited by Big4 audit firms, receiving foreign investment
and foreign participation in management will be large enterprises with many the ability to adopt IAS/IFRS
over others. As for the large group of companies that do not have listed stocks, the hypothesis of foreign
participation in management has no impact on the adoption of IAS/IFRS. This is in line with the real situation
in Vietnam because in large unlisted companies the number of foreigners joining the board is very low, they
are mainly the representatives of the Equity capital of foreign shareholders should not influence the level of
corporate governance. However, the survey in this large enterprise shows that investors have high expectations
about the process of adopting IAS/IFRS is being implemented in Vietnam.
5.2. Implications
5.2.1.

Implications for macro factors affecting the adoption of IAS/IFRS in Vietnam

5.2.1.1. Culture
In the process of studying the adoption of IAS/IFRS, Vietnam needs consultancy from organizations such
as IASB, AOSSG; Countries with IAS/IFRS experience very early, such as Australia and the United States, as
well as countries that have recently implemented IAS/IFRS but have relatively similar economies to our
country such as Thailand and Malaysia. The experience from these countries will be a valuable lesson for
Vietnam to shorten the full adoption of IAS/IFRS. The Ministry of Finance has created favorable conditions
for officials to learn experiences in implementing IAS/IFRS in other countries. This preparation will help
Vietnam actively and bravely implement the roadmap to adopt IAS/IFRS in the future. The Ministry of Finance
should do a good job of communicating to the positive impacts of adopting IAS/IFRS, avoiding the undue
psychological impact that distorts the development of financial markets as well as the economy.

5.2.1.2. Educational system
The Ministry of Finance should attach importance to the development of an IAS/IFRS qualified human
resource training and development strategy by coordinating with the Ministry of Education and Training to
develop accounting towards integration. The collaboration with universities, professional organizations and
supporting agencies to organize training, fostering and updating of accounting knowledge in the spirit of the
accounting standards issued and towards Access to IAS/IFRS. The Ministry of Finance should give the
Professional Association the right to translate, draft, and update the IAS/IFRS. Continue to promote
cooperation with training institutions (universities, Vietnam Association of Certified Public Accountants) and
international professional organizations such as CPA Australia, ACCA, ICAEW, and ENTERPRISES.
International reputation.
Accountancy training institutions actively improve the quality of accounting training. The need to innovate
curriculum and improve teaching methods is one of the important issues contributing to the improvement of
accounting infrastructure, in which education institutions include universities, colleges, the institute needs to
innovate its accounting training program in a way that enhances the teaching of VAS, IAS/IFRS-related


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content rather than teaching skills, processing accounting accounts for the training of people. Highly qualified
accounting practitioners and able to adopt IAS/IFRS effectively. Expanding links with international
universities, enlisting the co-operation of large corporations and professional organizations, enabling students
to gain access to the workplace, receive scholarships and Job opportunities in the process of learning and after
graduation.
5.2.1.3. Economic growth
The state should have clear strategies to maintain economic growth at the rate of 2017 to support the
economic growth factor, which will help the enterprise to be more favorable in adopting IAS/IFRS. The level
of inflation in the economy should be strictly controlled, stable and not affect the fluctuation of the economy.
The State should gradually improve the economic and legal environment in line with the requirements of
IAS/IFRS. The State should issue the enterprise management mechanism in the direction of obtaining
accounting information as one of the important bases for evaluating the quality and effectiveness of business
management.

5.2.1.4. Political system
To step up the full adoption of IAS/IFRS, the executive, legislative, and judicial sectors coordinate on the
basis of ensuring their independence in accordance with their respective functions of assignment, support and
control as required by law. the law. Promoting initiative and creativity of subordinates, stepping up the
decentralization, ensuring the uniform management of the system. The government must adopt policies to
mobilize investment in the construction of socio-economic infrastructure and to train high-quality human
resources to meet the development process. To actively integrate into the world, take initiative and create
favorable conditions for the country's construction and development. The state apparatus needs to be
streamlined, the contingent of cadres and civil servants have the qualities, capabilities and high professional
qualifications. The State should intensify the dialogue with the people and the enterprise through various
information channels so that the guidelines, policies and laws are closer to reality.
5.2.2.

Implications for micro group factors affecting the adoption of IAS / IFRS in Vietnam

5.2.2.1. Audit quality
To improve the professional qualification for auditors operating in auditing enterprises not belonging to
Big4 in order to ensure the reliability of the auditors' opinions on financial statements of the enterprise. When
the process of adopting IAS/IFRS is implemented, the problem to be solved is the technical imbalance between
the two auditing groups belonging to Big4 and not belonging to Big4. The Ministry of Finance should review
and check the qualifications, review the auditing process and the audit report, the working methods of the
auditors and the auditing enterprise so as to ensure the reliability of the audited financial statements..
5.2.2.2. Foreign investment
There should be a risk management mechanism for investors. If there is no legal corridor to gather
professional investment organizations, investors do not dare invest in companies. The government needs to be
equitized in line with the strategy of restructuring the economy, accepting strategic investors to participate in
large enterprise management in Vietnam to promote the integration and listing of capital on the international
market fastest. .