Promoting the willingness to apply IFRS of Vietnamese enterprises in the context of international integration

Abstract

As the global economic integration progresses, investors need to compare the financial statement information of enterprises in different countries to make rational decisions and create the optimal investment portfolio. Applying a common language for financial statements by using IFRS is a necessity for enterprises. The Decision 345/QD-BTC issued by the Ministry of Finance on March 16, 2020, which approved the Scheme on Application of Financial Reporting Standards in Vietnam, has demonstrated Vietnam’s commitment to the roadmap to apply IFRS. Therefore, the problem is to evaluate the intention and willingness to apply IFRS of Vietnamese enterprises before the IFRS application roadmap in order to facilitate their effective application. With the aim of clarifying this issue, the objective of the study is to identify and measure the influence of factors on the intention to apply IFRS in Vietnamese enterprises. The study uses a quantitative research method with a sample size of 171 enterprises in Vietnam, and uses Smart PLS software to test the research model. The research results indicate a positive relationship between the attitude towards IFRS application and the intention to apply IFRS at enterprises, and also explain the factors that affect the attitude of willingness to apply IFRS, including: benefits, costs, management roles, motivations. Moreover, through the PLS-SEM model, the author determines that there is a relationship between the willingness to apply Fair value and the intention to apply IFRS. The research results contribute to helping enterprises have a better overview of the application of IFRS, which is the basis for suggesting policy implications, supporting enterprises and stakeholders in better planning, preparation and more effective application of IFRS.