Nghiên cứu các nhân tố ảnh hưởng đến việc áp dụng IFRS tại các doanh nghiệp việt nam tt tiếng anh

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MINISTRY OF EDUCATION AND TRAINING
UNIVERSITY OF ECONOMICS HO CHI MINH CITY
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DETERMINANTS OF INTERNATIONAL
FINANCIAL REPORTING STANDARDS ADOPTION
IN VIETNAMESE ENTERPRISES

SUMMARY OF DISSERTATION

Ho Chi Minh City, 2020


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INTRODUCTION
1. Research background
The adoption of IFRS is an inevitable tendency in accounting. By region, The EU has the
highest adoption rate with 44 countries applying IFRS (100%). By Gross Domestic Product
(GDP), this number of all countries and territories has been applying and are intending to
apply IFRS accounts for 98.8% of the world's GDP (IFRS Foundation, 2018). Besides three

benefits that IFRS brings to companies as well as users of information include:
increasing information transparency, improving corporate responsibility, and
improving economic efficiency (IFRS Foundation, 2018), many scientific research
have yielded insights into the economic effects of IFRS adoption such as:
 Reduce earnings management and enhance earnings quality: Barth et al.
(2008), Chen et al (2010), Christensen et al. (2015), Sun et al (2011);
 Increase timely loss recognition: Barth et al. (2008), Christensen et al. (2015);

 Increase the relevance of value relevance information: Bartov et al. (2005),
Horton and Serafeim (2010), Barth et al. (2012),;
 Increase stock prices and liquidity: Daske et al (2008), Barth et al. (2014);
Barth et al. (2018).
The application of IFRS in Vietnam was mentioned a few years ago, but according
to the IFRS Foundation (on ifrs.org website), up to April 2020, Vietnam has not
officially committed to apply. Recently, Ministry of Finance issued draft of the
Scheme on application of IFRS (2019) and the official version of the Scheme under
Decision 345/QĐ-BTC on March 16, 2020. This indicates the application of IFRS in
Vietnam is indisputable. However, since IFRS are based on principles, the application
of IFRS is highly dependent on the qualifications and skills of accountants and
auditors, which can pose challenges in IFRS application process.
Through a review of previous studies, the dissertation’s author found that in many
publications published in Vietnam and other researches on the world-wide scale were


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based on financial statements or secondary data sources, while researches from the
perspective of behavior still have gaps to be studied because previous studies of
applying IFRS have not been able to fully combine the background theory to fully
solve the research problem. Data processing tools are still quite simple with SPSS
instead of other complex model processing software. Behavioral research can explore
and assess the factors that influence IFRS intentions, especially in cases where
Vietnam has not officially adopted IFRS. Therefore, based on the necessity of this
research issue, this dissertation researches on "Determinants of international financial
reporting standards adoption in Vietnamese enterprises". Indeed, IFRS application is
among topics receiving much attention in accounting field in Vietnam in the current
period.
2. Research objectives and research questions

The overall research objective of this dissertation is to study factors affecting the
application of IFRS standards in Vietnamese enterprises. Specific objectives include:
 Identify factors that affect the application of IFRS
 Measure the influence of these factors on the application of IFRS
 Identify the impact components of IFRS adoption factors
 Measure the impact of these components on the factors affecting the
application of IFRS
From the above specific objectives, the research will find solutions to the
respective questions as follows:
 What factors affect the application of IFRS?
 What is the level of influence of each factor on the application of IFRS in
Vietnamese enterprises?
 What are the factors that affect these influencing factors?
 How these components impact on the factors affecting the application of
IFRS in Vietnamese companies?


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3. Research subjects and scope
The subjects of this research are factors affecting the application of IFRS in
Vietnamese enterprises, more specifically, they are behavioral factors associated with
theory of planned behavior (TPB) and associated with the expanded TPB model with
the combination of institutional isomorphism theory. The dissertation does not go
into the study of each IFRS standard. In accordance with the above main objective,
the analytical unit of this dissertation is at enterprise level with the main survey
respondents including chief accountant (chief accountant, chief / deputy chief
accountant) and finance / accounting businesses (CEO, CFO, financial controller).
4. Research methodology
In keeping with the research objectives, which are determining the influencing factors

and the influence level of the factors, the dissertation is done by a combined method
and is carried out in two stages: pilot study and main study. In particular, pilot study
comprised two stages: quantitative research and quantitative research to test the
constructs; and in the quantitative research in the main study focuses on analyzing
data with PLS-SEM (Partial Least Square Strutural Equation Modeling) to determine
the impact factors on the application of IFRS in Vietnamese enterprises.
5. Research contributions
Theoretically, this dissertation has confirmed the appropriateness of two background
theories in the application of IFRS including the proposed TPB behavioral theory of
Ajzen (1991) and the institutional isomorphism theory of DiMaggio and Powell
(1983) in the context of an emerging economy - Vietnam. In addition, the theoretical
contribution of the research was to discover important factors affecting the intention
to apply IFRS in Vietnam including: Attitude, Peceived social pressure, Peceived
behavioral control. In addition, a detailed TPB model was developed to identify the
components that affect the factors affecting IFRS application, including: the impact
of Peceived Usefulness on Attitude; Coercive pressure, Mimetic pressure, Profession
pressure all affect Awareness of Perceived social pressure; Perceived resources and


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Facilitating Conditions have impact on Perceived behavioral control. In addition, the
thesis also introduces empirical evidence to prove the inheritance and application of
scales that have been tested in previous studies but still consistent with the research
concepts under the conditions at Vietnam.
In practice, this research has identified the behavioral factors that affect IFRS
application as well as the level of impact of these factors, thereby providing solutions
to accelerate the IFRS application process for policy makers to support Vietnamese
businesses to access IFRS most effectively. Specifically, the impact of Attitude on
IFRS adoption shows that making businesses feel positive about IFRS, especially in

the voluntary phase, is very important to promote the applicability of IFRS. The
research results can also help businesses have a more general view of the application
of IFRS, thereby providing the most complete preparation of resources or objective
conditions required for the upcoming application.


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CHAPTER 1: LITERATURE REVIEW

1.1 Previous international publications
1.1.1 Studies on factors of business environment
Studies of factors affecting the application of IFRS are usually conducted either at
the international scope or at national scope. More specifically, international scope
includes studies using data from many countries or enterprises across the world, while
national scope comprise by studies on enterprises in one particular country.
1.1.1.1 Affecting factors at international scope
The use of a uniform system of standards in the accounting field such as IFRS is very
necessary but also challenges, especially in the context of the countries which are in
the preliminary stage of application. The main causes of macroeconomic problems
especially in developing countries are legal system, taxation, financial system or
cultural factors.
Typical studies include quantitative research by Hope et al. (2006) about 38 voluntary
application countries before 2005, Zeghal and Mhadhbi (2006), Shima and Yang
(2012), Fox et al. (2013), studies by Schultz and Lopez (2001), Zehri and Chouaibi
(2013), or Alon (2010) applied the institutional theory of Meyer and Rowan (1977)
and the institutional isomorphism theory of DiMaggio and Powell (1983) on the
application of IFRS.
1.1.1.2 Affecting factors at domestic scope
Typical studies include the research of Gassen and Sellhorn (2006) in Germany from

1998-2004, André et al. (2012) when studying the situation of voluntary application
of IFRS in unlisted companies. in the United Kingdom in 2009, a study by BessieuxOllier and Walliser (2012) on the voluntary application of 85 companies in France
listed on the Alternext market, research by ğenyiğit (2014) in Turkey during the


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voluntary period of 2003-2004, or a study by Bova and Pereira (2012) on the case of
IFRS in Kenya.
The main factors affecting the adoption of IFRS by this research group include:
Enterprise size: Gassen and Sellhorn (2006), ğenyiğit (2014), Bessieux-Ollier and
Walliser (2012); Reputation of auditors: Şenyiğit (2014) Bessieux-Ollier and
Walliser (2012); Culture: Shimaa and Yang (2012), Zeghal and Mhadhbi (2006), Fox
et al (2013), Schultz and Lopez (2001); The complexity of IFRS and the qualifications
of accountants Jermakowicz and Gornick-Tomaszewski (2006), Alp and Ustundag
(2009), Alsaqqa and Sawan (2013).
1.1.2 Studies on factors of behavior
Instead of using existing data when studying environmental factors, many behavioral
studies on IFRS adoption are conducted by collecting primary data to investigate
perceptions of accountants, auditors, researchers or policy makers.
1.1.2.1 Factors of theory of institutional isomorphism
Mir and Rahaman (2004) used theory of institutional isomorphism of DiMaggio and
Powell (1983) to explore the process of applying IAS in Bangladesh; Phang and
Mahzan (2013) studied Malaysia's readiness to apply full IFRS since January 2012,
Nurunnabi (2015) studied IFRS application in Bangladesh, or Pricope (2016) used
secondary data to study IFRS application in 97 developing countries (including 70
countries already applied and 27 countries not yet applied at the time of 2013). On
the other hand, Aburous (2018) studied on the implementation of IFRS in Jordan
created a power imbalance between business accountants and auditors, and changes
familiar accounting practices.

1.1.2.2 Factors of theory of planned behavior and general perceptions
Research by Djatej et al (2012) in the US (including attitude, attitude to social
pressure and awareness of control). A study inheriting from Djatej et al (2012) as well
as Shima and Young (2012) is the study of Simegn (2015) in Ethiopia. One of the


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very large behavioral studies is the study of Jermakowicz and Gornick-Tomaszewski
(2006) to examine IFRS implementation process of EU businesses before applying
mandatory IFRS, Joshi and others (2008) on the awareness of accountants and
auditors on the application of IFRS in Bahrain. Bozkurt et al. (2013) on the awareness
of accountants and auditors on the application IFRS in Turkey; Research by Rezaee
et al (2010) in the US to assess the views of different groups on convergence of
American accounting standards with IFRS. In a number of subsequent studies,
including those of Moqbel et al. (2013), Kurt and Ucma (2013), both reuse the method
and questionnaire of Rezaee et al. A successor study of Moqbel et al. (2013) is Ahalik
(2016) in Indonesia.
On the other hand, the problem that businesses face is that IFRS is too complicated
while the qualifications of accountants are limited, and the conversion costs are too
high, such as the research of Alp and Ustundag (2009) in Turkey, research by Sawan
and Alsaqqa (2013) on the application of IFRS in the UAE, study of Fearnley and
Hines (2007) in the United Kingdom, or the Study of Bahadir et al (2016) in Turkey.
1.2 Previous studies in Vietnam:
The two popular research groups in Vietnam related to IFRS are the research on the
harmony between VAS and IFRS, and the research group of factors affecting the
application of IFRS. Because Vietnam has not yet officially adopted IFRS, most of
the enterprises that have made reports under IFRS are on a voluntary basis. And
therefore, the research on factors affecting IFRS application in Vietnam also revolves
around those who voluntarily apply IFRS. On the other hand, due to the fact that

Vietnam has not applied IFRS, most of the relevant studies are of an exploratory
nature, relying on primary data sources to solve research problems. In this overview,
only typical studies conducted in Vietnam with specific research models and research
hypotheses will be tested.


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1.2.1 Study on the harmonization between VAS and IFRS
Typical studies in this group include Tran Hong Van (2014) 's study of the harmony
in preparing and presenting the consolidated financial statements between
Vietnamese and international accounting; The study of Tran Quoc Thinh (2014) on
convergence between VAS and IFRS. Research by Pham Hoai Huong (2016) on
convergence between VAS and IFRS or new research of Tran Quoc Thinh and
Nguyen Thi Cam Thuy (2018) also on convergence between VAS and IFRS.
1.2.2 Research on the factors affecting the application of IFRS
For research on the factors affecting the application of IFRS, because Vietnam has
not applied IFRS, the number of related publications is not much and they are all
quantitative, discoverable and resource-based research. Primary data to solve
research problems. Given the limited number of IFRS studies in Vietnam, this
overview will include a number of studies on the factors affecting IFRS adoption for
small and medium-sized enterprises as well as the application of VAS for an overview
of research issues.
Researching the influencing factors in small and medium-sized enterprises of Tran
Dinh Khoi Nguyen (2011), or study of Tran Thi Thanh Hai (2015) when studying the
establishment and application of the legal framework for accounting for Vietnamese
enterprises Small and medium scale. An international publication by Dang Duc Son
(2011) identified five factors that affect the application of technical expertise in
Vietnam to small and medium-sized enterprises. Or a recent research on how external
actors affect SMEs in Vietnam when applying IFRS of Nguyen Thi Anh Linh (2018).

The study of influencing factors at large scale enterprises including research of Phan
et al (2014), authors used data collected from Vietnam to study advantages,
difficulties, and challenges in the application of IFRS, research by Phan et al. (2016)
have demonstrated that institutional factors in Vietnam have an influence on IFRS
application. Research by Dang Ngoc Hung (2017) on the factors affecting the level
of application of VAS in Vietnam. Research by Nguyen Thi Kim Cuc and Nguyen


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Le Van Khanh (2018) on factors affecting voluntary application of IFRS in Vietnam.
Research by Le Tran Hanh Phuong (2018) has identified at the national level
including 4 macro factors and 3 micro factors, Nguyen Ngoc Hiep (2017) research
on conversion of financial statements from VAS to IFRS, Research Ha Xuan Thach
and Nguyen Ngoc Hiep (2018) on factors affecting the conversion of financial
statements from VAS to IFRSm or the study of Thi Cam Thanh Tran et al (2019) on
the factors affecting the application of IFRS Vietnam.
1.3 Research gap
From the above analysis of overseas and domestic studies, it can be seen that the gap
of the IFRS study can be summarized as follows:
 Research on the application of IFRS in the direction of behavior in this period
is still more suitable to the Vietnamese context, when the number of
enterprises applying IFRS is still limited, the study of business environment
factors is still need more time and quantity of businesses.
 Virtually no research in the aspect of behavior, especially in the country,
applied the background theory which is the intended behavioral theory or the
institutional isomorphic theory thoroughly from theory to model. research to
identify factors influencing IFRS application.
 In addition, there have been no studies on IFRS application in foreign
countries and in the country that have combined these two theories into the

same research model. The research model of the previous studies is relatively
simple, with only factors that directly affect the application of IFRS without
considering indirect factors, i.e. the factors that affect the photo factor. affect
the application of IFRS.
 Survey subjects of previous studies are still scattered, including accountants,
auditors, researchers and regulators in the same study with the same set of
questions, while the main subjects IFRS application is an enterprise, there is
almost no independent research.


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Therefore, the author chooses the topic "Researching the factors affecting the
application of IFRS in Vietnamese enterprises" with the main objective of identifying
the influencing factors in the context that Vietnam is about to apply IFRS. next time.
Thereby, it can contribute to the theory of factors affecting the application of IFRS in
Vietnam as well as to expect certain practical contributions when businesses apply
IFRS.

CHAPTER 2: THEORETICAL FRAMEWORK
2.1 Overview of IFRS
2.1.1 IFRS development process
According to the IFRS Foundation (2018), more than one third of global financial
transactions are cross-border transactions. The number of countries participating in the IFRS
network has been increasing over the past decade, and up to now there have been 166
jurisdiction profiles completed by IFRS Foundation. IFRS Foundation (2018) believed that
IFRS's core objective is to help businesses around the world follow a universally acceptable
set of standards for preparing financial statements. IFRS can increase the transparency and
comparability of financial information then lead to better investment decision making.
Likewise, IFRS reinforces accountability by decreasing the information gap between

investors and businesses. IFRS also brings economic efficiency to investors in order to
recognize prospects and threats across the world. In addition to studying IFRS application
in European countries or developed countries, according to Lin (2012), research in less
developed countries is also essential, since applying IFRS in such countries will reduce the
asymmetry of information between businesses and foreign investors, thereby it is much
easier to attract foreign investment, and investors will be able to seize the opportunity to
thrive in these countries.

2.1.2 IFRS adoption around the world
The adoption of IFRS is an almost inevitable tendency in accounting. By region, The EU
has the highest adoption rate with 44 countries applying IFRS (100%). By Gross Domestic
Product (GDP), this number of all countries and territories has been applying and are


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intending to apply IFRS accounts for 98.8% of the world's GDP (IFRS Foundation, 2018).
However, among 166 countries in the IFRS network, there are several countries yet to adopt
or fully adopt even they are large economies such as the US and China, along with some
developing countries as India and Vietnam. For instance, in the US, domestic public
companies must use US GAAP, while IFRS is only permitted for listings by foreign
companies. In Japan, IFRS Standards are permitted but not required for domestic public
companies. For China, according to IFRS Foundation (2018), China has made commitment
to adopt IFRS by some local enterprises, however there is no specific schedule for
accomplishment of the process. Another instance is Vietnam, although Vietnam has filled
jurisdiction profile to IASB a few years ago, until now the current status of this country
recorded by IASB on ifrs.org website is still not applicable to IFRS. However, Vietnam is
also aware of the importance of IFRS and the Ministry of Finance has made important moves
on the application roadmap through the Project on adoption of IFRS issued earlier this year.

2.1.3 IFRS adoption in Vietnam
2.1.3.1 Current situation of IFRS application in domestic enterprises
According to the IFRS Foundation, as of July 2019, Vietnam is still one of the few countries
that have not applied IFRS. So far, early adopters in Vietnam are banks and several large
corporations in order to attract domestic investors as well as get great attention from foreign
investors. Establishing financial statements based on IFRS to attract foreign capital is
indispensable. For other enterprises, the application of IFRS (not including FDI enterprises
or joint ventures because IFRS is required to make corporate reports) is only voluntary.
However, in order to meet the integration needs, many businesses have actively applied the
preparation of financial statements based on VAS and IFRS, although this causes a lot of
ffort and money of businesses.

2.1.3.2 The enterprise accounting system in Vietnam
According to Narayan and Godden (2000), Vietnamese accounting was influenced
by China (in the 1960-1969 period), followed by the former Soviet Union (19691989), France and the United States (1989-1995). A memorable milestone of
Vietnamese accounting in the open period was in 1995 when the Ministry of Finance
issued Decision 1141-TC/QD/CDKT on the new business proposal, and in 2001


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when the first VAS standards were based on the issued IAS. In 2009, Circular
210/2009 /TT-BTC, issued on 6 November 2009, although referring to the application
of IFRS on financial instruments for information presentation and disclosure, there
was no regulation on measurement of financial instruments at fair value. The official
enactment and application of Circular 200 at the end of 2014 or Circular 133 issued
at the end of August 2016 on guidelines for accounting regime is a necessary step to
reach the goal of applying IFRS.
In addition, the Ministry of Finance's promulgation of Circular 202/2014/TT-BTC to
guide the method of preparing and presenting the consolidated financial statements

shows certain orientations on the application of international standards at the press
level. Report of domestic corporations. In addition, the Circular 210/2014/TT - BTC
dated 30/12/2014 on accounting guidelines for securities companies that allow the
application of fair value is also a big move towards IFRS preparation.
2.1.3.3 Scheme on application of IFRS in Vietnam
The official version of the Scheme on the application of IFRS in Vietnam was issued
under Decision 345/QĐ-BTC on March 16, 2020. The Ministry of Finance has built
a clearer roadmap inn order to build an international system of standards which must
be consistent with the situation in Vietnam. The proposal shows that IFRS
implementation will be phased into voluntary stage and mandatory stage.
2.2 Background theories
In the field of accounting, there are many theories that can be applied in research with
primary data as well as secondary data. However, when studying the factors affecting
the application of IFRS in Vietnam according to behavioral research, the application
of background theory is essential to well solve the research problem, especially for
studies of primary data. In particular, the above summary shows that there are two
theories that play important role in making the factors affecting the application of
IFRS in Vietnam, that is the theory of planned behavior of Ajzen ( 1985, 1991) and
theory of institutional isomorphism of DiMaggio and Powell (1983).


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2.3 Hypotheses development
Hypotheses related to the original TPB model
 H1: Attitude has a positive effect on IFRS application in Vietnamese
enterprises.
 H2: Perceived social pressure has a positive effect on IFRS application in
Vietnamese businesses.
 H3: Perceived behavioral control has a positive effect on IFRS application

in Vietnamese enterprises.
Hypotheses related to the extension of the TPB model
 H4: Perceived usefulness has a positive effect on IFRS application in
Vietnamese enterprises.
 H5: Perceived usefulness has a positive effect on attitude.
 H6: Perceived complexity of IFRS has a negative effect on attitude.
 H7: Coercive pressure has a positive effect on Perceived social pressure.
 H8: Mimetic pressure has a positive effect on Perceived social pressure.
 H9: Professional pressure has a positive effect on Perceived social
pressure.
 H10: Perceived resource have a positive effect on Perceived behavioral
control.
 H11: Facilitating conditions have positive effect on Perceived behavioral
control.


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CHAPTER 3: RESEARCH METHODOLOGY

3.1 Research process
The research process in this thesis includes the following basic steps (based on the
process of verifying the scientific theory of Nguyen Dinh Tho 2012, page 53):
 Step 1: Research overview to find research gaps, thereby identifying
research issues; Summary of relevant theories to build the proposed
research model and propose research hypotheses, build scales
 Step 2: Pilot study, including qualitative research with preliminary
quantitative research experts with businesses
 Step 3: Main study (Official quantitative research)
 Step 4: Evaluation of research results and discussion

3.2 Constructs of research concepts
From the proposed research model in chapter 2, it can be seen that the research
concepts presented in the thesis are latent variables, i.e. these variables cannot be
identified specifically, different from concepts are not implicit, such as sales or
profits) so they must be measured through scales rather than directly defined. These
research concepts are divided into two groups, endogenous variables and exogenous
variables. The endogenous variables belong to the original TPB model, while the
exogenous variables belong to the extension of the TPB model with a combination of
the models presented in chapter two.
The research papers related to the scales of the research concept are detailed in the
first two chapters of the thesis, most of them are in international ranked journals.
Specifically, the main scales that are inherited, adjusted and supplemented to be
suitable to the thesis's research issues include:
 The contructs of Liu et al. (2008) compared with that of Djatej et al. (2012).
In particular, the scale of Djatej et al. (2012) applied the original TPB


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model, and the scale of Liu et al. (2008) applied the expanded TPB model.
When building the scale, Djatej et al. (2012) admitted to inheriting and
reducing the scale of Liu et al. (2008), so these two scales have many
similarities with each other despite different research issue. Therefore, in
the process of inheriting scales, the author of the thesis always combines
these two scales to ensure the accuracy of the scale as well as to ensure that
survey questions are not missed.
 Phang and Mahzan (2013) scale of IFRS application in Malaysia. This is a
scale related to the institutional isomorphic model.
 Rezaee et al. (2010) on IFRS benefits and barriers in the US. This study is
inherited by many of the IFRS-related studies mentioned in the overview

chapter. However, Rezaee et al. (2010) did not apply any specific theory,
so the inheritance of observed variables in the original scale of the authors
will be selected to suit the background theories as well as the research
context in Vietnam.
3.3 Research design
This research is divided into two phases: the preliminary research phase and the main
phase. In which the preliminary phase includes qualitative research and preliminary
quantitative research; The latter is formal quantitative research. The objective of the
preliminary study was to calibrate the scale, which carried out expert interviews to
complete the draft scale; Then conduct a test survey to verify the scale. The result of
the preliminary study was a revised scale for use at the formal research stage. More
specifically, the preliminary research phase includes qualitative research with experts
in the field of accounting by in-depth interviews with managers and knowledge of
business accounting, lecturers, auditors, and IFRS expert in Vietnam to adjust the
scale; and preliminary quantitative research to test the scale. Subsequent quantitative
research will then be conducted to test the research model.


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CHAPTER 4: DATA ANALYSIS AND DISCUSSION
In this chapter, the author presents the research results from the process proposed in
chapter 3, that is, from the qualitative research, the author will remove inappropriate
observation variables, from which questionnaire will be sent for preliminary
quantitative research and data processing with SmartPLS software version 3.2.8.
After eliminating unsatisfactory variables, the questionnaire will be revised and sent
to managers from the accounting department and above to synthesize and process
data with PLS-SEM technique.
4.1 Pilot study results
4.1.1 Qualitative research

Basically, the qualitative research results show that most of the scales are agreed in
terms of content, thus achieving the main goal set out in chapter 3 of the qualitative
research section on content value and unidirection of the scale. The review of experts'
opinion shows that most of the scales have received agreement, in which experts have
some new proposals for some constructs such as perceived usefulness, perceived
resources and Facilitating conditions. In particular, the scales of perceived usefulness
are highly appreciated by experts. After the end of the qualitative research phase with
the agreement of experts, author added an observation variable to perceived
usefulness (by separating the variable HI4 into two different sentences), removed the
constructs of perceived complexity, removed the HI3 variable because it may overlap
with the HI5 variable), removed the old NL3 variable and replaced it with new NL3,
removed the old DK 3, add a new DK3 variable, and correct some sentences in the
observed variables to clarify the meaning as the expert's suggestion.
4.1.2 Preliminary quantitative research
The results of testing the scale after surveying 102 enterprises showed that there were
3 observed variables, namely ACC4, AMP4 and HI5, with external load factors of
0.642, 0.689 and 0.568 respectively, which is unsatisfactory due to lower than
thresholds allowed which is 0.7. In addition, the reliability of these observed variables


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is 0.412, 0.475, and 0.323 respectively, which means they do not reach the allowed
threshold of 0.5. Therefore, the author will remove these variables from the ACC,
AMP and HI scales to ensure the convergence value for the scales. Before eliminating
variables, the author considered whether the content of the scale was affected or not
and compared with expert opinion in the qualitative research on these observed
variables and assessed that the removal of this variable is still consistent with the
content value in the context of Vietnam. After eliminating these 3 variables, the
author runs the second official PLS Algorithm procedure with the results showing

that the reliability of the scale and the convergence value of the observed variables
increased compared to the first result, which suggests that it is appropriate to exclude
all three variables. The results of the second PLS Algorithm show that the indicators
of the convergence value of the scale and the intrinsic consistency reliability of the
scales in the model are satisfactory.
4.2 Main study results
4.2.1 Research sample
Official questionnaires were sent to businesses in Ho Chi Minh City, Hanoi, Binh
Duong, and Dong Nai, using non-probability sampling methods. Besides Ho Chi
Minh City, the official sample was expanded mainly in big cities including Hanoi,
Binh Duong, Dong Nai, Khanh Hoa, where many large enterprises and diverse
industries were concentrated. The official survey was conducted from December
2019 to the beginning of March 2020 with the number of official responses of 221
after filtering inappropriate data. As in the preliminary study, all participants were
selected as business managers or manager of accounting department, most of them
have seniority in accounting field from 5-10 years or above. 10 years.
Table 4. 28: Summary of hypotheses test results
Num
ber

Hypotheses

Co-

P

efficient Values

Results

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H1

Attitude has a positive effect on IFRS

0.290

0.000

Accepted

0.248

0.000

Accepted

0.229

0.000

Accepted

0.211

0.012*

Rejected at

application in Vietnamese enterprises.
H2

Perceived social pressure has a positive
effect on IFRS application in
Vietnamese enterprises.

H3

Perceived behavioral control has a
positive effect on IFRS application in
Vietnamese enterprises.

H4

Perceived usefulness has a positive
effect on IFRS application in

the 1%

Vietnamese enterprises.

significance
level

H5

Perceived usefulness has a positive

0.760

0.000

Accepted

0.200

0.005

Accepted

0.240

0.000

Accepted

0.457

0.003

Accepted

0.491

0.000

Accepted

0.343

0.005

Accepted

effect on attitude.
H6

Coercive pressure has a positive effect
on Perceived social pressure.

H7

Mimetic pressure has a positive effect
on Perceived social pressure.

H8

Professional pressure has a positive
effect on Perceived social pressure.

H9

Perceived resource have a positive
effect on Perceived behavioral control.

H10

Facilitating conditions have positive

effect on Perceived behavioral control.

(Source: author)


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4.3 Summary of results and discussion
4.3.1 Summary of results
Based on the results presented above from measurement model 1 (which is the official
research model of the thesis), it is shown that all hypotheses are accepted with a 5%
significance level. There is only one point to note that for the H4 hypothesis, if the
significance level is more rigorous at 1%, then this hypothesis will be rejected.
The research results show the appropriateness of TPB model or TPB model when
assessing intent of behavior, especially in the context that Vietnam is in the process
of application. The calculation results of R² show that the model has quite strong
endogeneous structure, that is, ensure the quality of the model. And when we look at
the f² and Q², q² coefficients, the results also show that exogenous variables are all
predictive of endogenous variables from the mean upwards.
4.3.2 Discussion
4.3.2.1 Impact of Attitudes, Perceived social pressure, and Perceived behavioral
control on the Application of IFRS
These are variables in the original TPB model and directly affect the application of
IFRS in Vietnam. Among these, the attitude variable has the strongest impact with
the impact coefficient of 0.290, followed by the Perceived social pressure (0.248) and
Perceived behavioral control (0.229), respectively.
4.3.2.2 Impact of variables in the original TPB model extension on Attitude,
Perceived social pressure, and Perceived behavioral control
The impact of Perceived usefulness on attitudes variables is very strong (0.760).
Although the previous studies ignore this relationship, the results of the thesis test

show that this effect is very suitable with Ajzen's original TPB theory (1991) or
Taylor's and Todd extended TPB model (1995b). Professional pressure has the
greatest impact on the perception of social pressure, followed by mimetic pressure
and coercive pressure, respectively.


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The enterprise resources and facilitating conditions required have a relatively strong
impact on Perceived behavioral control with the impact levels of 0.491 and 0.343
respectively. The research results have shown the very important role of enterprise
resources, and even have an indirect impact (0.12) on the application of IFRS.
4.3.3.3 The impact of the extension components in the research model on the
application of IFRS
The first component of the attitude variable, which is Perceived usefulness, also
affects the application of IFRS with a coefficient of 0.211. This relationship has been
demonstrated by the claims of Kurt and Ucma (2013), Moqbel et al. (2013), Rezaee
et al. (2010), or Joshi et al. (2008). However, the p-value of this relationship shows
that, if rigorously evaluated at the 1% significance level, this relationship is not
significant.
The results show that professional pressure and resources also have an impact on the
application with indirect impacts of 0.14 and 0.12, respectively. The remaining
factors include coercive pressure, mimetic pressure, and required conditions all have
negligible indirect impact on the IFRS application in Vietnam.

CHAPTER 5: CONCLUSIONS AND IMPLICATIONS

5.1 Conclusions
The research results show that the application of TPB model and the extended TPB
model for the application of IFRS in the context of Vietnam is appropriate. In

particular, from the perspective of TPB model, the research results show that the
endogenous structure of the model is quite strong with the strongest impact on the
application of IFRS is the attitude of the account manager. This result is consistent
with the original TPB model when Azjen (1991) emphasized the importance of
attitude to the intention of behavior. This can be considered as a new point of the


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thesis when compared with studies using intended behavior theory on IFRS
application in other countries in the world, when the previous authors ignored this
variable in the research model.
From the perspective of the expanded TPB model, the analysis shows Perceived
usefulness contributes to promoting a positive attitude as well as the intention to apply
IFRS. In addition, due to external pressures, internal pressures have created pressure
on the intention to apply IRRS. For example, mimetic pressure causes businesses to
follow industry peers, and especially professional pressure, which is driven by
professional organizations, which contributes to the impact on business perceptions.
It is worth noting that although coercive pressure is the main determinant of behavior
in the institutional structure model, in the context of Vietnam, because IFRS has not
been applied, it does not actually create great force to influence accountant's
awareness of IFRS application. In addition, derived from expert opinions, some ideas
are also concretized through two variables to observe business resources and external
conditions needed to be successful in applying IFRS, which is the agreement. In the
tax policy and accounting policies, and the close coordination among departments in
the enterprise are important factors to indirectly influence IFRS application through
awareness of corporate control.
5.2 Implications
5.2.1 Theoretical implications
Theoretically, one of the new points of the thesis theoretically is to combine two

important background theories in behavioral research, including the proposed
behavioral theory of Ajzen (1991) and the theory of institutional isomorphism of
Dimaggio and Powell (1983). Although this combination is inherited from Liu et al.
(2008), the context of the application of IFRS as a whole in the theoretical section of
chapter 1 shows that most of the studies have shown Applying one of two separate
theories, this combination of research into the application of IFRS can be considered
a difference.


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In addition, compared to previous studies on IFRS application both domestically and
internationally, the thesis has built a more complete research model, covering most
of the variables affecting the research. Research, especially in behavioral research.
Specifically, since the main model is TPB, which is quite simple, the thesis has built
exogenous variables suitable for research and development issues from the extended
TPB model of Taylor and Todd (1995b). The independent variables in the TPB model
are very flexible compared to the variables of the TPB model, and can be changed to
fit the research problem when combined with appropriate complementary theories.
The results of the measurement model test show that the expanded TPB model is
perfectly suitable for the study of factors affecting the application of IFRS.
Through the extended TPB model, this dissertation has added to the research model
of the Perceived usefulness from the scale of Rezaee et al. (2010) to consider the
impact on attitude variables. This is also the main factors in the TAM model, a model
developed from the original TPB model. The thesis has successfully tested the impact
of both Perceived usefulness and attitude on research issues. Thereby, additional
empirical evidence has also been added in the application of the TAM model to the
application of IFRS.
Another contribution of the thesis in terms of theory is to successfully test the role of
the attitude variable for the application, while previous publications ignored this

factor. This result is also entirely consistent with the argument of Ajzen (1991) that
the attitude variable is the most important factor in the TPB model. A positive attitude
will lead to positive intentions about behavior, thereby affecting actual behavior.
In addition, the emergence of the institutional isomorphism model combined with the
TPB model the scales applied from the study of Phang and Mahzan (2013) has also
been successfully tested, thereby showing the variables in the institutional
isomorphism model, which is the external factor that has an impact on the perception
of social pressure, which is an internal factor, and has an impact on the intention to
apply IFRS. Compared to the previous studies presented in chapter 1 that apply the


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institutional isomorphism theory such as Aburous (2018) or Phang and Mahzan
(2013), it can be seen that the results of the thesis have brought the point differences,
can be considered as a new point of the dissertation, when these variables do not
directly affect the research problem but only indirectly through the mediating role of
the perceived social pressure.
Next, compared to the previous publications that applied the intended behavior theory
in the application of IFRS, the dissertation had a clearer extension to the first-order
components of the Perceived behavioral control variable compared to previous
studies. Specifically, the thesis has developed a scale for the concepts of Resources
and Facilitating Conditions, these are the two independent variables affecting the
perceived behavioral control in the research model.
Finally, a difference of the dissertation compared to the studies that preceded the same
research problem is that the persons surveyed in this dissertation are all people
working in the enterprises, this will make the research results becomes closer to
companies than previous studies which tested various objects in the research model
(including opinions of auditors, lecturers, and researchers).
5.2.2 Practical implications

In practice, results have shown that the behavioral factors contribute to IFRS
application in enterprises, which can contribute to the decision makers applying IFRS
in Viet Nam. It can be seen that the most important factor promoting IFRS application
is Attitude with a level of 0.29, higher than the other two factors. Thus, once
businesses have a positive attitude towards IFRS, their motivation to apply will
become clearer. To do this, it is necessary to help management personnel understand
the role and need of IFRS.
Next, perceived social pressure also plays an important role in applying IFRS with
the impact level of 0.248. Perception of social pressure is influenced by three factors:
Coercive pressure, mimetic pressure, and professional pressure:


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 Coercive pressure means that when an enterprise is aware of the pressure /
encouragement from the developer to apply IFRS, this will change their
perception and thereby affect awareness.
 Regarding mimetic pressure, research results show that businesses tend to look
at companies in the same field, especially leading companies, models of
multinational enterprises to follow. .
 The impact of professional pressure on perceived social pressure shows that
for accountants, career trends also play a key role in changing their
perceptions. This shows that the professional association is a very useful
channel that regulators need to pay attention to when developing IFRS
roadmap in Vietnam.
Finally, in order to apply IFRS successfully, it is impossible to ignore the control
awareness, including resources (which are considered as intrinsic factors of the
enterprise) and the external objective conditions required to apply IFRS.
 Building a qualified accounting human resource is very important for
successful application of IFRS. In the qualitative survey, most expert opinions

emphasized the need for investing in human resources, once the knowledge of
IFRS has been widely updated, in which training institutions play the role of
If the application is very important, then the application of IFRS will no longer
be too big barriers.
 For objective factors outside the enterprise, agreement on accounting
management policy and consistency with tax policy are required. In addition,
if the mechanism of checking and monitoring compliance is not good, the
transparency and comparability of domestic financial statements will decrease.
Another note for IFRS application in Vietnam is that the guidelines need to be
complete, detailed and timely.