Factors Affecting the Intention to Apply IFRS to Enterprises In Dong Nai Province

ABSTRACT:

International Financial Reporting Standards (IFRS) have been applied by many countries around the world in many different ways bringing practical benefits to the economy. IFRS plays as an international accounting framework for the preparation and presentation of financial information. IFRS requires businesses to report their financial results and financial situation by using a consistent set of rules. These financial statements provide comprehensive, accurate and prompt information to investors that allow them to have a more general view of the capital market and reduce risks in making investment decisions. The study proposes a model of factors affecting the intention to apply IFRS for businesses in Dong Nai province. The model was built on the basis of quantitative research on EFA analysis and multivariate linear regression of data sets collected from 185 different enterprises. The results of regression analysis show that 60.6% of intention to apply IFRS to enterprises in Dong Nai province is influenced by 5 factors listing in descending order of influence as follows: Capital Market, Legal System, Educational Background, Economic Growth and Culture.

KEYWORDS: IFRS, Financial Statement, Applying Intention, Enterprises, Dong Nai

Nguyen Van Hai, Le Kim Uyen, Ha Nguyen Thuy Dung (2021)

Accounting & Auditing Review. ISSN: 1859-1914, January + February 2021, pp 57-61