Purpose – The purpose of this paper is to report the findings of a survey examining the factors t... more Purpose – The purpose of this paper is to report the findings of a survey examining the factors that affect compliance with accounting standards by small and medium-sized enterprises (SMEs) in the transitional economy of Vietnam. Design/methodology/approach – The study is in the form of a postal questionnaire survey with accounting practitioners working in SMEs in Vietnam. Findings – The paper reveals that SMEs' compliance with accounting standards is limited. An analysis of empirical evidence finds that compliance with accounting standards was largely a legal issue and SMEs perceived little benefits from that. Legal requirements and perceptions of external uses of accounting information were the main drivers of the companies' compliance with accounting standards. The perception of cost-benefit relationship and the management and accounting skills had a limited impact on SMEs' compliance with accounting standards. Research limitations/implications – Since the study focuses on accounting practitioners in a transitional economy, the generalisability of the research findings is highly contextual and restricted. Practical implications – Legal requirements were the main factor affecting the SMEs' compliance with accounting standards. SMEs lacked accounting skills and infrastructure to implement accounting regulations and standards. The accountants were not convinced of costs and benefits associated with the implementation of the accounting standards. Originality/value – The study contributes to the light literature of accounting standards for SMEs by providing empirical evidence on the practice of accounting by SMEs in transitional economies. The paper reveals the relevance of accounting standards to SMEs and how the application of these standards affects their reporting practices.
Purpose – The purpose of this paper is to examine the recent accounting regulations designed to f... more Purpose – The purpose of this paper is to examine the recent accounting regulations designed to facilitate international harmonization in Vietnam and to show how Vietnam developed an accounting system that harmonizes with international standards while preserving macroeconomic control. Design/methodology/approach – This paper is developed using the theoretical framework on globalisation. Findings – The recent development of accounting aims to implement Vietnam's commitment to harmonize its accounting system with the world. This process has faced some difficulties due to national particularities such as Vietnam's economic system and accounting tradition. This paper shows that the regulators have been careful in their approach to develop and find ways to combine or adapt when pushing for accounting development: a coexistence of vietnamese accounting standards and a uniform accounting system. This point differs from the Anglo-Saxon world, but is comparable to China. Research limitations/implications – The different approach to developing accounting regulation in Vietnam reflects the key role of the State in preserving governmental control while harmonizing with international standards. Practical implications – This paper studies the influence of globalization on accounting development in Vietnam. It suggests that developing accounting practices in a country in harmony with international standards faces obstacles previously evidenced in the literature, such as economic system and accounting tradition. The study also provides insight into problems encountered by regulators who are incorporating international accounting standards into national accounting regulations. These problems suggest that international accounting standard setters and accounting regulators may face issues similar to those in Vietnam. Originality/value – This paper contributes to the literature on international accounting harmonisation by illustrating the need for considering national particularities as factors that will affect the rate of harmonisation with international accounting standards.
Purpose – The purpose of this paper is to provide a comprehensive yet concise review of changes w... more Purpose – The purpose of this paper is to provide a comprehensive yet concise review of changes which have occurred in Vietnamese accounting regulations and practices since the mid-1980s, and an analysis of prospective developments. Design/methodology/approach – A combination of analytical review and synthesis of information available from diverse sources, and analysis of information obtained from interviews with 20 middle-to-senior practicing accountants. Findings – Over the past two decades, as Vietnam implemented economic liberalization and developed closer links with Western economies, its accounting system has changed accordingly. The current system is a mixture of conceptual and formal elements taken from Western accounting and some basic features and practices retained from the old (Soviet-style and French-influenced) system. Further convergence toward international practices is likely to be slow, especially in the SME sector and in large enterprises that do not attract capital from foreign sources. Developments in management accounting and the accounting profession are also reviewed. Originality/value – The paper contributes to the literature by providing structured and consistent information about a country which is reported only infrequently in the international literature, and considering both the pros and cons of harmonizing with IAS/IFRS in a developing-country context.
Purpose – The purpose of this paper is to report the findings of a survey examining the factors t... more Purpose – The purpose of this paper is to report the findings of a survey examining the factors that affect compliance with accounting standards by small and medium-sized enterprises (SMEs) in the transitional economy of Vietnam. Design/methodology/approach – The study is in the form of a postal questionnaire survey with accounting practitioners working in SMEs in Vietnam. Findings – The paper reveals that SMEs' compliance with accounting standards is limited. An analysis of empirical evidence finds that compliance with accounting standards was largely a legal issue and SMEs perceived little benefits from that. Legal requirements and perceptions of external uses of accounting information were the main drivers of the companies' compliance with accounting standards. The perception of cost-benefit relationship and the management and accounting skills had a limited impact on SMEs' compliance with accounting standards. Research limitations/implications – Since the study focuses on accounting practitioners in a transitional economy, the generalisability of the research findings is highly contextual and restricted. Practical implications – Legal requirements were the main factor affecting the SMEs' compliance with accounting standards. SMEs lacked accounting skills and infrastructure to implement accounting regulations and standards. The accountants were not convinced of costs and benefits associated with the implementation of the accounting standards. Originality/value – The study contributes to the light literature of accounting standards for SMEs by providing empirical evidence on the practice of accounting by SMEs in transitional economies. The paper reveals the relevance of accounting standards to SMEs and how the application of these standards affects their reporting practices.
Purpose – The purpose of this paper is to examine the recent accounting regulations designed to f... more Purpose – The purpose of this paper is to examine the recent accounting regulations designed to facilitate international harmonization in Vietnam and to show how Vietnam developed an accounting system that harmonizes with international standards while preserving macroeconomic control. Design/methodology/approach – This paper is developed using the theoretical framework on globalisation. Findings – The recent development of accounting aims to implement Vietnam's commitment to harmonize its accounting system with the world. This process has faced some difficulties due to national particularities such as Vietnam's economic system and accounting tradition. This paper shows that the regulators have been careful in their approach to develop and find ways to combine or adapt when pushing for accounting development: a coexistence of vietnamese accounting standards and a uniform accounting system. This point differs from the Anglo-Saxon world, but is comparable to China. Research limitations/implications – The different approach to developing accounting regulation in Vietnam reflects the key role of the State in preserving governmental control while harmonizing with international standards. Practical implications – This paper studies the influence of globalization on accounting development in Vietnam. It suggests that developing accounting practices in a country in harmony with international standards faces obstacles previously evidenced in the literature, such as economic system and accounting tradition. The study also provides insight into problems encountered by regulators who are incorporating international accounting standards into national accounting regulations. These problems suggest that international accounting standard setters and accounting regulators may face issues similar to those in Vietnam. Originality/value – This paper contributes to the literature on international accounting harmonisation by illustrating the need for considering national particularities as factors that will affect the rate of harmonisation with international accounting standards.
Purpose – The purpose of this paper is to provide a comprehensive yet concise review of changes w... more Purpose – The purpose of this paper is to provide a comprehensive yet concise review of changes which have occurred in Vietnamese accounting regulations and practices since the mid-1980s, and an analysis of prospective developments. Design/methodology/approach – A combination of analytical review and synthesis of information available from diverse sources, and analysis of information obtained from interviews with 20 middle-to-senior practicing accountants. Findings – Over the past two decades, as Vietnam implemented economic liberalization and developed closer links with Western economies, its accounting system has changed accordingly. The current system is a mixture of conceptual and formal elements taken from Western accounting and some basic features and practices retained from the old (Soviet-style and French-influenced) system. Further convergence toward international practices is likely to be slow, especially in the SME sector and in large enterprises that do not attract capital from foreign sources. Developments in management accounting and the accounting profession are also reviewed. Originality/value – The paper contributes to the literature by providing structured and consistent information about a country which is reported only infrequently in the international literature, and considering both the pros and cons of harmonizing with IAS/IFRS in a developing-country context.
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