Capability and benefits of applying international financial reporting standards in enterprises in Vietnam

Resumen

This study examines the impact of key determinants on the capability to adopt International Financial Reporting Standards (IFRS) in Vietnam. The factors analyzed include: (i) the legal framework, (ii) accountants’ experience and capability, (iii) professional and advisory organizations, and (iv) firm characteristics. Using structural equation modeling (SEM) and survey data collected from 480 accountants, the study evaluates the relationship between implementation feasibility and the benefits derived from IFRS. The results indicate that all four factors, the legal system, accountants’ experience and capability, professional organizations, and firm characteristics exert positive effects on IFRS adoption capability. Furthermore, the SEM results confirm that IFRS adoption capability is positively associated with the benefits of applying these standards. The study also explores the moderating roles of variables such as job position, professional qualification, and years of experience in influencing the relationship between IFRS feasibility and benefits. The findings reveal that professional qualification and job position have more significant effects than years of experience in optimizing the value derived from IFRS. Based on these results, the study proposes recommendations to encourage enterprises to accelerate the IFRS-based financial reporting roadmap, thereby enhancing competitiveness and promoting international integration.