DETERMINANTS OF VIETNAMESE COMPANIES’ READINESS TO ADOPT INTERNATIONAL FINANCIAL REPORTING STANDARDS

Abstract

This study identifies the determinants influencing the readiness of companies to adopt International Financial Reporting Standards (IFRS) in Vietnam. Quantitative methods were applied using survey data from 226 financial and accounting managers. The data were analyzed through Cronbach’s Alpha, Exploratory Factor Analysis (EFA), and Structural Equation Modeling (SEM) to test the proposed research model. The results indicate that corporate culture, IFRS-related investment costs, accounting staff qualifications, the presence of Big Four auditors, and the proportion of foreign ownership positively affect IFRS readiness. In contrast, managerial attitude and company size do not show a significant impact. The findings suggest that readiness to adopt IFRS is shaped by internal capabilities and external institutional pressures, consistent with the Theory of Planned Behavior and New Institutional Theory. Accordingly, the study recommends enhancing accounting capacity, supporting transition costs, and fostering a culture of transparency as key factors to promote IFRS adoption in Vietnamese enterprises.