Applying International Financial Reporting Standards (IFRS) and Challenges to Vietnamese Enterprises
Main Article Content
Abstract
The worldwide adoption of the International Financial Reporting Standards (IFRS) is occurring rapidly to improve the quality of accounting information through the use of a set of standardized accounting rules. In that context, Vietnamese enterprises are switching from the Vietnam Accounting Standards to the International Financial Reporting Standards in preparing their financial statements. This transformation generates both opportunities and challenges for Vietnamese businesses. This research carries out literature reviews and in-depth interviews with some researchers and experts to identify what difficulties Vietnamese businesses are facing in transforming financial statement standards and to propose lessons learnt for other businesses that are preparing for the transformation. Besides, the research also compares a big enterprise’s financial statements prepared under VAS versus IFRS as a case study to point out some differences between the two accounting standards.
References
[2] Duong Nguyen Thanh Tam, “International Financial Reporting Standards (IFRS) in Countries around the World and Roadmap for Application to Vietnam,” Journal of Economics - Technology, 27 (09/2019) 61-67 (in Vietnamese).
[3] Victor-Octavian Müller, “The Impact of IFRS Adoption on the Quality of Consolidated Financial Reporting,” Procedia - Social and Behavioral Sciences, 109 (2014) 976-982.
[4] Mohamed Zakari, “Challenges of International Financial Reporting Standards (IFRS) Adoption in Libya,” International Journal of Accounting and Financial Reporting, 4 (2) (2014) 23.
[5] Mohammad Hossain et al., “Adoption of International Financial Reporting Standards in Bangladesh: Benefits and Challenges,” Journal of Business and Management, 17 (8) (2015) Ver. I, 16-24.
[6] Kimberly G. Keyand Jeong Youn Kim, “IFRS Adoption in Korea: The Relation Between Earnings and Stock Prices and Returns,” The Journal of Business Inquiry, 17 (2) (2017) 72-85.
[7] Kimberly G. Key, Jeong Youn Kim, “IFRS and Accounting Quality: Additional Evidence from Korea,” Journal of International Accounting, Auditing and Taxation, 39 (2020).
[8] Olga Golubeva, “Maximising International Returns: Impact of IFRS on Foreign Direct Investments,” Journal of Contemporary Accounting and Economics, 16 (2) (2020) 100200.
[9] Nguyen Thi Kim Huyen, “Application International Financial Reporting Standards (IFRS): International Experiences and Lessons for Vietnam,” Journal of Science and Technology, Thai Nguyen University, 07 (2017) 168 (in Vietnamese).
[10] Le Van Tan, “Benefits and Orientation in the Application of International Accounting Standards in Vietnamese Enterprises,” IFRSVN, 2017, http://ifrsvietnam.vn/tin-tuc/nghien-cuu-trao-doi-72/loi-ich-va-dinh-huong-trong-viec-ap-dung-chuan-muc-ke-toan-quoc-te-trong-cac-doanh-nghiep-viet-nam-194.html (Accessed on March 01st, 2021) (in Vietnamese).
[11] Tran Hai Long, Nguyen Thi Nga, “Applying International Financial Reporting Standards (IFRS) in listed companies: Opportunities and challenges,” Journal of Finance and Accounting, 05 (2018) 178 (in Vietnamese).
[12] Tran Thi Phuong Mai, “Applying International Financial Reporting Standards (IFRS), Difficulties for Vietnamese Enterprises,” Journal of Accounting and Auditing, 2018, 43-45 (in Vietnamese).
[13] Pham Thi Minh Tue, “Applying IFRS - World Experiences and Solutions for Vietnam,” Journal of Accounting & Auditing of the Vietnam Association of Accountants and Auditors, 04 (2017) 26-29 (in Vietnamese).
[14] Trinh Le Tan, Dao Thi Dai Trang, “International Financial Reporting Standards 15 and the Problem Posed with Vietnamese Enterprises,” Financial Magazine, 12/2018, 36-38 (in Vietnamese).
[15] Annual Report 2019, Vinamilk, pp.143-144. https://www.vinamilk.com.vn/vi/bao-cao-thuong-nien (Accessed on March 01st, 2021) (in Vietnamese).