Factors Influencing the Intention to Adopt International Financial Reporting Standards: A Case Study in the Mekong Delta

Abstract

Currently, Vietnam is applying Vietnamese Accounting Standards (VAS) in the preparation and presentation of financial statements with 26 standards. However, the rapidly growing economy increasingly requires Vietnam to integrate with international financial reporting standards in order to attract foreign investors to invest in capital markets and enterprises in Vietnam. The main objective of the study is to find out the factors affecting the intention of enterprises participating in applying International Financial Reporting Standards (IFRS) in Vietnam. The study uses Partial Least Squares-Structural Equation Modeling with survey data from 375 enterprises in the Mekong Delta. The results show that the factors affecting the intentions of enterprises include the attitudes and subjective norms of business managers. “Attitude” has three components: social feedback assessment, belief in benefits and risk perception. The “subjective norms” are influenced by belief and motivation.