0 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HO CHI MINH CITY DETERMINANTS OF INTERNATIONAL FINANCIAL REPORTING STANDARDS ADOPTION IN VIETNAMESE ENTERPRISES SUMMARY OF DISSERTATION Ho Chi Minh City, 2020 INTRODUCTION Research background The adoption of IFRS is an inevitable tendency in accounting By region, The EU has the highest adoption rate with 44 countries applying IFRS (100%) By Gross Domestic Product (GDP), this number of all countries and territories has been applying and are intending to apply IFRS accounts for 98.8% of the world's GDP (IFRS Foundation, 2018) Besides three benefits that IFRS brings to companies as well as users of information include: increasing information transparency, improving corporate responsibility, and improving economic efficiency (IFRS Foundation, 2018), many scientific research have yielded insights into the economic effects of IFRS adoption such as:  Reduce earnings management and enhance earnings quality: Barth et al (2008), Chen et al (2010), Christensen et al (2015), Sun et al (2011);  Increase timely loss recognition: Barth et al (2008), Christensen et al (2015);  Increase the relevance of value relevance information: Bartov et al (2005), Horton and Serafeim (2010), Barth et al (2012),;  Increase stock prices and liquidity: Daske et al (2008), Barth et al (2014); Barth et al (2018) The application of IFRS in Vietnam was mentioned a few years ago, but according to the IFRS Foundation (on ifrs.org website), up to April 2020, Vietnam has not officially committed to apply Recently, Ministry of Finance issued draft of the Scheme on application of IFRS (2019) and the official version of the Scheme under Decision 345/QĐ-BTC on March 16, 2020 This indicates the application of IFRS in Vietnam is indisputable However, since IFRS are based on principles, the application of IFRS is highly dependent on the qualifications and skills of accountants and auditors, which can pose challenges in IFRS application process Through a review of previous studies, the dissertation’s author found that in many publications published in Vietnam and other researches on the world-wide scale were based on financial statements or secondary data sources, while researches from the perspective of behavior still have gaps to be studied because previous studies of applying IFRS have not been able to fully combine the background theory to fully solve the research problem Data processing tools are still quite simple with SPSS instead of other complex model processing software Behavioral research can explore and assess the factors that influence IFRS intentions, especially in cases where Vietnam has not officially adopted IFRS Therefore, based on the necessity of this research issue, this dissertation researches on "Determinants of international financial reporting standards adoption in Vietnamese enterprises" Indeed, IFRS application is among topics receiving much attention in accounting field in Vietnam in the current period Research objectives and research questions The overall research objective of this dissertation is to study factors affecting the application of IFRS standards in Vietnamese enterprises Specific objectives include:  Identify factors that affect the application of IFRS  Measure the influence of these factors on the application of IFRS  Identify the impact components of IFRS adoption factors  Measure the impact of these components on the factors affecting the application of IFRS From the above specific objectives, the research will find solutions to the respective questions as follows:  What factors affect the application of IFRS?  What is the level of influence of each factor on the application of IFRS in Vietnamese enterprises?  What are the factors that affect these influencing factors?  How these components impact on the factors affecting the application of IFRS in Vietnamese companies? 3 Research subjects and scope The subjects of this research are factors affecting the application of IFRS in Vietnamese enterprises, more specifically, they are behavioral factors associated with theory of planned behavior (TPB) and associated with the expanded TPB model with the combination of institutional isomorphism theory The dissertation does not go into the study of each IFRS standard In accordance with the above main objective, the analytical unit of this dissertation is at enterprise level with the main survey respondents including chief accountant (chief accountant, chief / deputy chief accountant) and finance / accounting businesses (CEO, CFO, financial controller) Research methodology In keeping with the research objectives, which are determining the influencing factors and the influence level of the factors, the dissertation is done by a combined method and is carried out in two stages: pilot study and main study In particular, pilot study comprised two stages: quantitative research and quantitative research to test the constructs; and in the quantitative research in the main study focuses on analyzing data with PLS-SEM (Partial Least Square Strutural Equation Modeling) to determine the impact factors on the application of IFRS in Vietnamese enterprises Research contributions Theoretically, this dissertation has confirmed the appropriateness of two background theories in the application of IFRS including the proposed TPB behavioral theory of Ajzen (1991) and the institutional isomorphism theory of DiMaggio and Powell (1983) in the context of an emerging economy - Vietnam In addition, the theoretical contribution of the research was to discover important factors affecting the intention to apply IFRS in Vietnam including: Attitude, Peceived social pressure, Peceived behavioral control In addition, a detailed TPB model was developed to identify the components that affect the factors affecting IFRS application, including: the impact of Peceived Usefulness on Attitude; Coercive pressure, Mimetic pressure, Profession pressure all affect Awareness of Perceived social pressure; Perceived resources and Facilitating Conditions have impact on Perceived behavioral control In addition, the thesis also introduces empirical evidence to prove the inheritance and application of scales that have been tested in previous studies but still consistent with the research concepts under the conditions at Vietnam In practice, this research has identified the behavioral factors that affect IFRS application as well as the level of impact of these factors, thereby providing solutions to accelerate the IFRS application process for policy makers to support Vietnamese businesses to access IFRS most effectively Specifically, the impact of Attitude on IFRS adoption shows that making businesses feel positive about IFRS, especially in the voluntary phase, is very important to promote the applicability of IFRS The research results can also help businesses have a more general view of the application of IFRS, thereby providing the most complete preparation of resources or objective conditions required for the upcoming application CHAPTER 1: LITERATURE REVIEW 1.1 Previous international publications 1.1.1 Studies on factors of business environment Studies of factors affecting the application of IFRS are usually conducted either at the international scope or at national scope More specifically, international scope includes studies using data from many countries or enterprises across the world, while national scope comprise by studies on enterprises in one particular country 1.1.1.1 Affecting factors at international scope The use of a uniform system of standards in the accounting field such as IFRS is very necessary but also challenges, especially in the context of the countries which are in the preliminary stage of application The main causes of macroeconomic problems especially in developing countries are legal system, taxation, financial system or cultural factors Typical studies include quantitative research by Hope et al (2006) about 38 voluntary application countries before 2005, Zeghal and Mhadhbi (2006), Shima and Yang (2012), Fox et al (2013), studies by Schultz and Lopez (2001), Zehri and Chouaibi (2013), or Alon (2010) applied the institutional theory of Meyer and Rowan (1977) and the institutional isomorphism theory of DiMaggio and Powell (1983) on the application of IFRS 1.1.1.2 Affecting factors at domestic scope Typical studies include the research of Gassen and Sellhorn (2006) in Germany from 1998-2004, André et al (2012) when studying the situation of voluntary application of IFRS in unlisted companies in the United Kingdom in 2009, a study by BessieuxOllier and Walliser (2012) on the voluntary application of 85 companies in France listed on the Alternext market, research by ğenyiğit (2014) in Turkey during the voluntary period of 2003-2004, or a study by Bova and Pereira (2012) on the case of IFRS in Kenya The main factors affecting the adoption of IFRS by this research group include: Enterprise size: Gassen and Sellhorn (2006), ğenyiğit (2014), Bessieux-Ollier and Walliser (2012); Reputation of auditors: Şenyiğit (2014) Bessieux-Ollier and Walliser (2012); Culture: Shimaa and Yang (2012), Zeghal and Mhadhbi (2006), Fox et al (2013), Schultz and Lopez (2001); The complexity of IFRS and the qualifications of accountants Jermakowicz and Gornick-Tomaszewski (2006), Alp and Ustundag (2009), Alsaqqa and Sawan (2013) 1.1.2 Studies on factors of behavior Instead of using existing data when studying environmental factors, many behavioral studies on IFRS adoption are conducted by collecting primary data to investigate perceptions of accountants, auditors, researchers or policy makers 1.1.2.1 Factors of theory of institutional isomorphism Mir and Rahaman (2004) used theory of institutional isomorphism of DiMaggio and Powell (1983) to explore the process of applying IAS in Bangladesh; Phang and Mahzan (2013) studied Malaysia's readiness to apply full IFRS since January 2012, Nurunnabi (2015) studied IFRS application in Bangladesh, or Pricope (2016) used secondary data to study IFRS application in 97 developing countries (including 70 countries already applied and 27 countries not yet applied at the time of 2013) On the other hand, Aburous (2018) studied on the implementation of IFRS in Jordan created a power imbalance between business accountants and auditors, and changes familiar accounting practices 1.1.2.2 Factors of theory of planned behavior and general perceptions Research by Djatej et al (2012) in the US (including attitude, attitude to social pressure and awareness of control) A study inheriting from Djatej et al (2012) as well as Shima and Young (2012) is the study of Simegn (2015) in Ethiopia One of the very large behavioral studies is the study of Jermakowicz and Gornick-Tomaszewski (2006) to examine IFRS implementation process of EU businesses before applying mandatory IFRS, Joshi and others (2008) on the awareness of accountants and auditors on the application of IFRS in Bahrain Bozkurt et al (2013) on the awareness of accountants and auditors on the application IFRS in Turkey; Research by Rezaee et al (2010) in the US to assess the views of different groups on convergence of American accounting standards with IFRS In a number of subsequent studies, including those of Moqbel et al (2013), Kurt and Ucma (2013), both reuse the method and questionnaire of Rezaee et al A successor study of Moqbel et al (2013) is Ahalik (2016) in Indonesia On the other hand, the problem that businesses face is that IFRS is too complicated while the qualifications of accountants are limited, and the conversion costs are too high, such as the research of Alp and Ustundag (2009) in Turkey, research by Sawan and Alsaqqa (2013) on the application of IFRS in the UAE, study of Fearnley and Hines (2007) in the United Kingdom, or the Study of Bahadir et al (2016) in Turkey 1.2 Previous studies in Vietnam: The two popular research groups in Vietnam related to IFRS are the research on the harmony between VAS and IFRS, and the research group of factors affecting the application of IFRS Because Vietnam has not yet officially adopted IFRS, most of the enterprises that have made reports under IFRS are on a voluntary basis And therefore, the research on factors affecting IFRS application in Vietnam also revolves around those who voluntarily apply IFRS On the other hand, due to the fact that Vietnam has not applied IFRS, most of the relevant studies are of an exploratory nature, relying on primary data sources to solve research problems In this overview, only typical studies conducted in Vietnam with specific research models and research hypotheses will be tested 1.2.1 Study on the harmonization between VAS and IFRS Typical studies in this group include Tran Hong Van (2014) 's study of the harmony in preparing and presenting the consolidated financial statements between Vietnamese and international accounting; The study of Tran Quoc Thinh (2014) on convergence between VAS and IFRS Research by Pham Hoai Huong (2016) on convergence between VAS and IFRS or new research of Tran Quoc Thinh and Nguyen Thi Cam Thuy (2018) also on convergence between VAS and IFRS 1.2.2 Research on the factors affecting the application of IFRS For research on the factors affecting the application of IFRS, because Vietnam has not applied IFRS, the number of related publications is not much and they are all quantitative, discoverable and resource-based research Primary data to solve research problems Given the limited number of IFRS studies in Vietnam, this overview will include a number of studies on the factors affecting IFRS adoption for small and medium-sized enterprises as well as the application of VAS for an overview of research issues Researching the influencing factors in small and medium-sized enterprises of Tran Dinh Khoi Nguyen (2011), or study of Tran Thi Thanh Hai (2015) when studying the establishment and application of the legal framework for accounting for Vietnamese enterprises Small and medium scale An international publication by Dang Duc Son (2011) identified five factors that affect the application of technical expertise in Vietnam to small and medium-sized enterprises Or a recent research on how external actors affect SMEs in Vietnam when applying IFRS of Nguyen Thi Anh Linh (2018) The study of influencing factors at large scale enterprises including research of Phan et al (2014), authors used data collected from Vietnam to study advantages, difficulties, and challenges in the application of IFRS, research by Phan et al (2016) have demonstrated that institutional factors in Vietnam have an influence on IFRS application Research by Dang Ngoc Hung (2017) on the factors affecting the level of application of VAS in Vietnam Research by Nguyen Thi Kim Cuc and Nguyen Le Van Khanh (2018) on factors affecting voluntary application of IFRS in Vietnam Research by Le Tran Hanh Phuong (2018) has identified at the national level including macro factors and micro factors, Nguyen Ngoc Hiep (2017) research on conversion of financial statements from VAS to IFRS, Research Ha Xuan Thach and Nguyen Ngoc Hiep (2018) on factors affecting the conversion of financial statements from VAS to IFRSm or the study of Thi Cam Thanh Tran et al (2019) on the factors affecting the application of IFRS Vietnam 1.3 Research gap From the above analysis of overseas and domestic studies, it can be seen that the gap of the IFRS study can be summarized as follows:  Research on the application of IFRS in the direction of behavior in this period is still more suitable to the Vietnamese context, when the number of enterprises applying IFRS is still limited, the study of business environment factors is still need more time and quantity of businesses  Virtually no research in the aspect of behavior, especially in the country, applied the background theory which is the intended behavioral theory or the institutional isomorphic theory thoroughly from theory to model research to identify factors influencing IFRS application  In addition, there have been no studies on IFRS application in foreign countries and in the country that have combined these two theories into the same research model The research model of the previous studies is relatively simple, with only factors that directly affect the application of IFRS without considering indirect factors, i.e the factors that affect the photo factor affect the application of IFRS  Survey subjects of previous studies are still scattered, including accountants, auditors, researchers and regulators in the same study with the same set of questions, while the main subjects IFRS application is an enterprise, there is almost no independent research 12 when the first VAS standards were based on the issued IAS In 2009, Circular 210/2009 /TT-BTC, issued on November 2009, although referring to the application of IFRS on financial instruments for information presentation and disclosure, there was no regulation on measurement of financial instruments at fair value The official enactment and application of Circular 200 at the end of 2014 or Circular 133 issued at the end of August 2016 on guidelines for accounting regime is a necessary step to reach the goal of applying IFRS In addition, the Ministry of Finance's promulgation of Circular 202/2014/TT-BTC to guide the method of preparing and presenting the consolidated financial statements shows certain orientations on the application of international standards at the press level Report of domestic corporations In addition, the Circular 210/2014/TT - BTC dated 30/12/2014 on accounting guidelines for securities companies that allow the application of fair value is also a big move towards IFRS preparation 2.1.3.3 Scheme on application of IFRS in Vietnam The official version of the Scheme on the application of IFRS in Vietnam was issued under Decision 345/QĐ-BTC on March 16, 2020 The Ministry of Finance has built a clearer roadmap inn order to build an international system of standards which must be consistent with the situation in Vietnam The proposal shows that IFRS implementation will be phased into voluntary stage and mandatory stage 2.2 Background theories In the field of accounting, there are many theories that can be applied in research with primary data as well as secondary data However, when studying the factors affecting the application of IFRS in Vietnam according to behavioral research, the application of background theory is essential to well solve the research problem, especially for studies of primary data In particular, the above summary shows that there are two theories that play important role in making the factors affecting the application of IFRS in Vietnam, that is the theory of planned behavior of Ajzen ( 1985, 1991) and theory of institutional isomorphism of DiMaggio and Powell (1983) 13 2.3 Hypotheses development Hypotheses related to the original TPB model  H1: Attitude has a positive effect on IFRS application in Vietnamese enterprises  H2: Perceived social pressure has a positive effect on IFRS application in Vietnamese businesses  H3: Perceived behavioral control has a positive effect on IFRS application in Vietnamese enterprises Hypotheses related to the extension of the TPB model  H4: Perceived usefulness has a positive effect on IFRS application in Vietnamese enterprises  H5: Perceived usefulness has a positive effect on attitude  H6: Perceived complexity of IFRS has a negative effect on attitude  H7: Coercive pressure has a positive effect on Perceived social pressure  H8: Mimetic pressure has a positive effect on Perceived social pressure  H9: Professional pressure has a positive effect on Perceived social pressure  H10: Perceived resource have a positive effect on Perceived behavioral control  H11: Facilitating conditions have positive effect on Perceived behavioral control 14 CHAPTER 3: RESEARCH METHODOLOGY 3.1 Research process The research process in this thesis includes the following basic steps (based on the process of verifying the scientific theory of Nguyen Dinh Tho 2012, page 53):  Step 1: Research overview to find research gaps, thereby identifying research issues; Summary of relevant theories to build the proposed research model and propose research hypotheses, build scales  Step 2: Pilot study, including qualitative research with preliminary quantitative research experts with businesses  Step 3: Main study (Official quantitative research)  Step 4: Evaluation of research results and discussion 3.2 Constructs of research concepts From the proposed research model in chapter 2, it can be seen that the research concepts presented in the thesis are latent variables, i.e these variables cannot be identified specifically, different from concepts are not implicit, such as sales or profits) so they must be measured through scales rather than directly defined These research concepts are divided into two groups, endogenous variables and exogenous variables The endogenous variables belong to the original TPB model, while the exogenous variables belong to the extension of the TPB model with a combination of the models presented in chapter two The research papers related to the scales of the research concept are detailed in the first two chapters of the thesis, most of them are in international ranked journals Specifically, the main scales that are inherited, adjusted and supplemented to be suitable to the thesis's research issues include:  The contructs of Liu et al (2008) compared with that of Djatej et al (2012) In particular, the scale of Djatej et al (2012) applied the original TPB 15 model, and the scale of Liu et al (2008) applied the expanded TPB model When building the scale, Djatej et al (2012) admitted to inheriting and reducing the scale of Liu et al (2008), so these two scales have many similarities with each other despite different research issue Therefore, in the process of inheriting scales, the author of the thesis always combines these two scales to ensure the accuracy of the scale as well as to ensure that survey questions are not missed  Phang and Mahzan (2013) scale of IFRS application in Malaysia This is a scale related to the institutional isomorphic model  Rezaee et al (2010) on IFRS benefits and barriers in the US This study is inherited by many of the IFRS-related studies mentioned in the overview chapter However, Rezaee et al (2010) did not apply any specific theory, so the inheritance of observed variables in the original scale of the authors will be selected to suit the background theories as well as the research context in Vietnam 3.3 Research design This research is divided into two phases: the preliminary research phase and the main phase In which the preliminary phase includes qualitative research and preliminary quantitative research; The latter is formal quantitative research The objective of the preliminary study was to calibrate the scale, which carried out expert interviews to complete the draft scale; Then conduct a test survey to verify the scale The result of the preliminary study was a revised scale for use at the formal research stage More specifically, the preliminary research phase includes qualitative research with experts in the field of accounting by in-depth interviews with managers and knowledge of business accounting, lecturers, auditors, and IFRS expert in Vietnam to adjust the scale; and preliminary quantitative research to test the scale Subsequent quantitative research will then be conducted to test the research model 16 CHAPTER 4: DATA ANALYSIS AND DISCUSSION In this chapter, the author presents the research results from the process proposed in chapter 3, that is, from the qualitative research, the author will remove inappropriate observation variables, from which questionnaire will be sent for preliminary quantitative research and data processing with SmartPLS software version 3.2.8 After eliminating unsatisfactory variables, the questionnaire will be revised and sent to managers from the accounting department and above to synthesize and process data with PLS-SEM technique 4.1 Pilot study results 4.1.1 Qualitative research Basically, the qualitative research results show that most of the scales are agreed in terms of content, thus achieving the main goal set out in chapter of the qualitative research section on content value and unidirection of the scale The review of experts' opinion shows that most of the scales have received agreement, in which experts have some new proposals for some constructs such as perceived usefulness, perceived resources and Facilitating conditions In particular, the scales of perceived usefulness are highly appreciated by experts After the end of the qualitative research phase with the agreement of experts, author added an observation variable to perceived usefulness (by separating the variable HI4 into two different sentences), removed the constructs of perceived complexity, removed the HI3 variable because it may overlap with the HI5 variable), removed the old NL3 variable and replaced it with new NL3, removed the old DK 3, add a new DK3 variable, and correct some sentences in the observed variables to clarify the meaning as the expert's suggestion 4.1.2 Preliminary quantitative research The results of testing the scale after surveying 102 enterprises showed that there were observed variables, namely ACC4, AMP4 and HI5, with external load factors of 0.642, 0.689 and 0.568 respectively, which is unsatisfactory due to lower than thresholds allowed which is 0.7 In addition, the reliability of these observed variables 17 is 0.412, 0.475, and 0.323 respectively, which means they not reach the allowed threshold of 0.5 Therefore, the author will remove these variables from the ACC, AMP and HI scales to ensure the convergence value for the scales Before eliminating variables, the author considered whether the content of the scale was affected or not and compared with expert opinion in the qualitative research on these observed variables and assessed that the removal of this variable is still consistent with the content value in the context of Vietnam After eliminating these variables, the author runs the second official PLS Algorithm procedure with the results showing that the reliability of the scale and the convergence value of the observed variables increased compared to the first result, which suggests that it is appropriate to exclude all three variables The results of the second PLS Algorithm show that the indicators of the convergence value of the scale and the intrinsic consistency reliability of the scales in the model are satisfactory 4.2 Main study results 4.2.1 Research sample Official questionnaires were sent to businesses in Ho Chi Minh City, Hanoi, Binh Duong, and Dong Nai, using non-probability sampling methods Besides Ho Chi Minh City, the official sample was expanded mainly in big cities including Hanoi, Binh Duong, Dong Nai, Khanh Hoa, where many large enterprises and diverse industries were concentrated The official survey was conducted from December 2019 to the beginning of March 2020 with the number of official responses of 221 after filtering inappropriate data As in the preliminary study, all participants were selected as business managers or manager of accounting department, most of them have seniority in accounting field from 5-10 years or above 10 years Table 28: Summary of hypotheses test results Num ber Hypotheses Co- P efficient Values Results 18 H1 Attitude has a positive effect on IFRS 0.290 0.000 Accepted 0.248 0.000 Accepted 0.229 0.000 Accepted 0.211 0.012* Rejected at application in Vietnamese enterprises H2 Perceived social pressure has a positive effect on IFRS application in Vietnamese enterprises H3 Perceived behavioral control has a positive effect on IFRS application in Vietnamese enterprises H4 Perceived usefulness has a positive effect on IFRS application in the 1% Vietnamese enterprises significance level H5 Perceived usefulness has a positive 0.760 0.000 Accepted 0.200 0.005 Accepted 0.240 0.000 Accepted 0.457 0.003 Accepted 0.491 0.000 Accepted 0.343 0.005 Accepted effect on attitude H6 Coercive pressure has a positive effect on Perceived social pressure H7 Mimetic pressure has a positive effect on Perceived social pressure H8 Professional pressure has a positive effect on Perceived social pressure H9 Perceived resource have a positive effect on Perceived behavioral control H10 Facilitating conditions have positive effect on Perceived behavioral control (Source: author) 19 4.3 Summary of results and discussion 4.3.1 Summary of results Based on the results presented above from measurement model (which is the official research model of the thesis), it is shown that all hypotheses are accepted with a 5% significance level There is only one point to note that for the H4 hypothesis, if the significance level is more rigorous at 1%, then this hypothesis will be rejected The research results show the appropriateness of TPB model or TPB model when assessing intent of behavior, especially in the context that Vietnam is in the process of application The calculation results of R² show that the model has quite strong endogeneous structure, that is, ensure the quality of the model And when we look at the f² and Q², q² coefficients, the results also show that exogenous variables are all predictive of endogenous variables from the mean upwards 4.3.2 Discussion 4.3.2.1 Impact of Attitudes, Perceived social pressure, and Perceived behavioral control on the Application of IFRS These are variables in the original TPB model and directly affect the application of IFRS in Vietnam Among these, the attitude variable has the strongest impact with the impact coefficient of 0.290, followed by the Perceived social pressure (0.248) and Perceived behavioral control (0.229), respectively 4.3.2.2 Impact of variables in the original TPB model extension on Attitude, Perceived social pressure, and Perceived behavioral control The impact of Perceived usefulness on attitudes variables is very strong (0.760) Although the previous studies ignore this relationship, the results of the thesis test show that this effect is very suitable with Ajzen's original TPB theory (1991) or Taylor's and Todd extended TPB model (1995b) Professional pressure has the greatest impact on the perception of social pressure, followed by mimetic pressure and coercive pressure, respectively 20 The enterprise resources and facilitating conditions required have a relatively strong impact on Perceived behavioral control with the impact levels of 0.491 and 0.343 respectively The research results have shown the very important role of enterprise resources, and even have an indirect impact (0.12) on the application of IFRS 4.3.3.3 The impact of the extension components in the research model on the application of IFRS The first component of the attitude variable, which is Perceived usefulness, also affects the application of IFRS with a coefficient of 0.211 This relationship has been demonstrated by the claims of Kurt and Ucma (2013), Moqbel et al (2013), Rezaee et al (2010), or Joshi et al (2008) However, the p-value of this relationship shows that, if rigorously evaluated at the 1% significance level, this relationship is not significant The results show that professional pressure and resources also have an impact on the application with indirect impacts of 0.14 and 0.12, respectively The remaining factors include coercive pressure, mimetic pressure, and required conditions all have negligible indirect impact on the IFRS application in Vietnam CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 5.1 Conclusions The research results show that the application of TPB model and the extended TPB model for the application of IFRS in the context of Vietnam is appropriate In particular, from the perspective of TPB model, the research results show that the endogenous structure of the model is quite strong with the strongest impact on the application of IFRS is the attitude of the account manager This result is consistent with the original TPB model when Azjen (1991) emphasized the importance of attitude to the intention of behavior This can be considered as a new point of the 21 thesis when compared with studies using intended behavior theory on IFRS application in other countries in the world, when the previous authors ignored this variable in the research model From the perspective of the expanded TPB model, the analysis shows Perceived usefulness contributes to promoting a positive attitude as well as the intention to apply IFRS In addition, due to external pressures, internal pressures have created pressure on the intention to apply IRRS For example, mimetic pressure causes businesses to follow industry peers, and especially professional pressure, which is driven by professional organizations, which contributes to the impact on business perceptions It is worth noting that although coercive pressure is the main determinant of behavior in the institutional structure model, in the context of Vietnam, because IFRS has not been applied, it does not actually create great force to influence accountant's awareness of IFRS application In addition, derived from expert opinions, some ideas are also concretized through two variables to observe business resources and external conditions needed to be successful in applying IFRS, which is the agreement In the tax policy and accounting policies, and the close coordination among departments in the enterprise are important factors to indirectly influence IFRS application through awareness of corporate control 5.2 Implications 5.2.1 Theoretical implications Theoretically, one of the new points of the thesis theoretically is to combine two important background theories in behavioral research, including the proposed behavioral theory of Ajzen (1991) and the theory of institutional isomorphism of Dimaggio and Powell (1983) Although this combination is inherited from Liu et al (2008), the context of the application of IFRS as a whole in the theoretical section of chapter shows that most of the studies have shown Applying one of two separate theories, this combination of research into the application of IFRS can be considered a difference 22 In addition, compared to previous studies on IFRS application both domestically and internationally, the thesis has built a more complete research model, covering most of the variables affecting the research Research, especially in behavioral research Specifically, since the main model is TPB, which is quite simple, the thesis has built exogenous variables suitable for research and development issues from the extended TPB model of Taylor and Todd (1995b) The independent variables in the TPB model are very flexible compared to the variables of the TPB model, and can be changed to fit the research problem when combined with appropriate complementary theories The results of the measurement model test show that the expanded TPB model is perfectly suitable for the study of factors affecting the application of IFRS Through the extended TPB model, this dissertation has added to the research model of the Perceived usefulness from the scale of Rezaee et al (2010) to consider the impact on attitude variables This is also the main factors in the TAM model, a model developed from the original TPB model The thesis has successfully tested the impact of both Perceived usefulness and attitude on research issues Thereby, additional empirical evidence has also been added in the application of the TAM model to the application of IFRS Another contribution of the thesis in terms of theory is to successfully test the role of the attitude variable for the application, while previous publications ignored this factor This result is also entirely consistent with the argument of Ajzen (1991) that the attitude variable is the most important factor in the TPB model A positive attitude will lead to positive intentions about behavior, thereby affecting actual behavior In addition, the emergence of the institutional isomorphism model combined with the TPB model the scales applied from the study of Phang and Mahzan (2013) has also been successfully tested, thereby showing the variables in the institutional isomorphism model, which is the external factor that has an impact on the perception of social pressure, which is an internal factor, and has an impact on the intention to apply IFRS Compared to the previous studies presented in chapter that apply the 23 institutional isomorphism theory such as Aburous (2018) or Phang and Mahzan (2013), it can be seen that the results of the thesis have brought the point differences, can be considered as a new point of the dissertation, when these variables not directly affect the research problem but only indirectly through the mediating role of the perceived social pressure Next, compared to the previous publications that applied the intended behavior theory in the application of IFRS, the dissertation had a clearer extension to the first-order components of the Perceived behavioral control variable compared to previous studies Specifically, the thesis has developed a scale for the concepts of Resources and Facilitating Conditions, these are the two independent variables affecting the perceived behavioral control in the research model Finally, a difference of the dissertation compared to the studies that preceded the same research problem is that the persons surveyed in this dissertation are all people working in the enterprises, this will make the research results becomes closer to companies than previous studies which tested various objects in the research model (including opinions of auditors, lecturers, and researchers) 5.2.2 Practical implications In practice, results have shown that the behavioral factors contribute to IFRS application in enterprises, which can contribute to the decision makers applying IFRS in Viet Nam It can be seen that the most important factor promoting IFRS application is Attitude with a level of 0.29, higher than the other two factors Thus, once businesses have a positive attitude towards IFRS, their motivation to apply will become clearer To this, it is necessary to help management personnel understand the role and need of IFRS Next, perceived social pressure also plays an important role in applying IFRS with the impact level of 0.248 Perception of social pressure is influenced by three factors: Coercive pressure, mimetic pressure, and professional pressure: 24  Coercive pressure means that when an enterprise is aware of the pressure / encouragement from the developer to apply IFRS, this will change their perception and thereby affect awareness  Regarding mimetic pressure, research results show that businesses tend to look at companies in the same field, especially leading companies, models of multinational enterprises to follow  The impact of professional pressure on perceived social pressure shows that for accountants, career trends also play a key role in changing their perceptions This shows that the professional association is a very useful channel that regulators need to pay attention to when developing IFRS roadmap in Vietnam Finally, in order to apply IFRS successfully, it is impossible to ignore the control awareness, including resources (which are considered as intrinsic factors of the enterprise) and the external objective conditions required to apply IFRS  Building a qualified accounting human resource is very important for successful application of IFRS In the qualitative survey, most expert opinions emphasized the need for investing in human resources, once the knowledge of IFRS has been widely updated, in which training institutions play the role of If the application is very important, then the application of IFRS will no longer be too big barriers  For objective factors outside the enterprise, agreement on accounting management policy and consistency with tax policy are required In addition, if the mechanism of checking and monitoring compliance is not good, the transparency and comparability of domestic financial statements will decrease Another note for IFRS application in Vietnam is that the guidelines need to be complete, detailed and timely 25 5.3 Limitations and future research As for the sample size, the dissertation faces some limitations like previous studies in the world, that is, the sample size is not too large, although the sample size is still within the initial expectation of the thesis as well as consistent with PLS processing technique Regarding the sampling method, the thesis cannot apply probability sampling although this method is more representative for the whole than the non-probability method chosen by the thesis, due to time and expense constraints This is also a common limitation in previous studies A further limitation is that the scale applied in the dissertation is the default format which is reflective when processing data, instead of taking advantage of SmartPLS compared to SPSS and AMOS software, which is able to handle both the reflective and formative constructs In addition, another limitation of the thesis is not using control variables such as size or industry to analyze the differences between business groups in the research Regarding the next research direction, the thesis proposes several directions as follows: Firstly, expanding the scope of the independent variables, ie the superlative components in the expanded TPB model Second, when Vietnam has adopted IFRS massively, or as the number of businesses adopting it has increased, the data may be sufficient to investigate the impact of IFRS adoption on the financial statements This is a very broad research direction, requiring the data source to be large enough and wide enough, ie many businesses and over many years of application In the world, this research trend also outweighs the research trend of IFRS application behavior 26 AUTHOR’S PUBLICATIONS RELATED TO THE THESIS Lê Việt (2016) IFRS application around the world and orientation for IFRS application in Vietnam Scientific Conference – School of Accounting and Auditing - Banking University Lê Việt (2019) Studying factors affecting IFRS application in Vietnam: summary of background theories International scientific seminar - Vietnamese Accounting, future and prospects, Ministry of Finance Lê Việt (2019) Research overview of factors affecting the application of international financial statements standard IFRS VCAA National Scientific Conference, University of Economics.Ho Chi Minh City Lê Việt (2020) Impact of voluntary and compulsory IFRS application on accounting information quality Journal of Accounting & Auditing Lê Việt (2020) Applying the combination of TAM and TPB model for assessing the IFRS implication into enterprises located in Ho Chi Minh City Vietnam Trade and Industry Review ... The application of IFRS in Vietnam was mentioned a few years ago, but according to the IFRS Foundation (on ifrs. org website), up to April 2020, Vietnam has not officially committed to apply Recently,... Vietnam related to IFRS are the research on the harmony between VAS and IFRS, and the research group of factors affecting the application of IFRS Because Vietnam has not yet officially adopted IFRS, ... solutions to accelerate the IFRS application process for policy makers to support Vietnamese businesses to access IFRS most effectively Specifically, the impact of Attitude on IFRS adoption shows that