An Application of Fair Value in Enterprises: An Empirical Evidence from Ho Chi Minh City, Vietnam

Abstract

Fair value is increasingly showing its outstanding feature that contributes to the transparency of financial information, which is one of the most critical criteria when investors consider investing in enterprises. This study aims to analyze the factors that affect the ability to apply fair value in Ho Chi Minh City companies and the shortcomings in the transition from using the historical cost to applying fair value. We suggest solutions to create favourable conditions for applying fair value. This study collected data from 250 survey samples after performing the Cronbach Alpha scale testing and exploratory factor analysis (EFA). Research results show that 05 factors have a positive and statistically significant impact on applying fair value in Hochiminh City enterprises, including accounting staff qualifications, accounting information users, enterprise characteristics, business environment, and integration pressure