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

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

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:


3
-

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.


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

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

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


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

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.

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

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


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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.

➢


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
-


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


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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.


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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.

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


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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.

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 (
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.
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)


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The Omnibus test in Table 4.18 shows that Sig.


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- 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.

5.2.1.4. 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. .