Nguyen Thi Phuong Thao

IMPACT OF GLOBALIZATION ON INTERNATIONAL ACCOUTING
HARMONIZATION: A CASE OF VIETNAM
BY
NGUYEN THI PHUONG THAO
Graduation Project Submitted to the Department of Business Studies

Help University College, in Partial Fulfillment of Requirements for
The Degree of Bachelor of Business (Accounting) Hons
JUNE 2010
ACKNOWLEDGEMENT
First and foremost, my sincere gratitude is dedicated to my supervisor Dr. Le Van

Lien. Thanks for your strong support, guidance, intuitive comments, and also
motivation through the process of completing this thesis.
In addition, I would like to send my gratitude to the International School and HELP
University College for giving me an opportunity to conduct my study in my favorite
area.
Furthermore, I also address my appreciation to Mr. Nguyen Xuan Thuy (Vice chief
Executive of Bao Viet finance- insurance Groups) and Ms. Ho Thi Thu Phuong
(Academic Administrator of British University Vietnam) who supported my thesis
with enormous information in data collection process. My thankfulness is also
addressed to others who have helped me since the beginning of my study until I can
finish my thesis.
Finally, thanks you to all my family and friends, for your support, help, and
motivation and made it possible for me to complete this study.
Hanoi, June 2010

Nguyen Thi Phuong Thao
IMPACT OF GLOBALIZATION ON INTERNATIONAL ACCOUTING

HARMONIZATION: A CASE OF VIETNAM
BY
NGUYEN THI PHUONG THAO
JUNE 2010
Supervisor: Dr. Le Van Lien
ABSTRACT
This study provides the framework for understanding the concept of accounting
harmonization. Some of key elements relating to this concept such as: the importance
of accounting harmonization in global economy, the actor of issuance IAS, the
advantages and disadvantages of accounting harmonization, the different levels of
accounting harmonization are clarified. This study also tries to evaluate the
infrastructure of accounting system in Vietnam response to international accounting.
First of this action, the researcher evaluate the role of MOF in its efforts for making
harmonization process. This is shown by establishment of Vietnamese accounting
standards. Secondly, the researcher tries to compare some typical Vietnamese
Accounting Standards and International Accounting Standards. The purpose of
comparison is to evaluate the adoption of international accounting into Vietnamese
accounting environment. Furthermore, the researcher desires to examine the
awareness of Vietnamese accountants (including different levels) toward accounting
harmonization. This research tries to evaluate how their attitudes, their behaviors,
and their needs relating to accounting harmonization. Finally, this study tries to
evaluate actual applications and accounting treatments in some companies (different
types and sizes of companies) in accordance with accounting harmonization. This is

because once we understand and evaluate the actual picture of accounting
harmonization process in Vietnam, we can learn from the experience. This is helpful
for future research or strategic plans. From the results obtained through
questionnaires, the term of accounting harmonization is not new in Vietnam, and
Vietnam is completing its harmonization process step by step. However, awareness
of Vietnamese about this term is different from each other, and the differences
between actual applications in some companies. Thus, several recommendations and
scopes for future research might be developed by the researcher. However, because
of limitation, this study only covers some typical items of this topic.
TABLE OF CONTENT
Page
Declaration of Originality and Word Count
ii
Acknowledgment
iii
Abstract
iv
Table of content
vi
List of tables
ix
List of Abbreviations
xi
CHAPTER 1
INTRODUCTION
1.1 Background of the study
1.2 Research objectives
1.3 Problem statement
1.4 Limitation of the study
1.5 Organization of the research
References
CHAPTER 2
LITERATURE REVIEW
2.1 The importance of accounting harmonization
2.1.1 The need for accounting harmonization
2.1.2 Distinguish between accounting harmonization and accounting

standardization
2.2 The actor of issuance IAS
10
2.3 Advantages of accounting harmonization
11
2.4 Disadvantages of accounting harmonization
13
2.5 Different levels of accounting harmonization
14
2.5.1 International level of accounting harmonization
14
2.5.2 Regional level of accounting harmonization
15
2.5.3 National level of accounting harmonization
17
2.5.3.1 Some countries in ASEAN
17
2.5.3.2 Vietnam
19
References
CHAPTER 3
21
RESEARCH METHODOLOGY
3.1 Research objectives
27
3.2 Research Methodology
28
3.2.1 Primary data
28
3.2.2 Secondary data
29
3.3 Research Instrument
30
3.3.1 Awareness of Vietnamese accountants of accounting harmonization
31
3.3.2 How companies in Vietnam response to accounting harmonization
31
3.4 Research Hypotheses
32
3.5 Data Collection
33
3.6 Sampling
34
3.6.1 Firms
34
3.6.2 Accountants
34
3.7 Response Rate
34
3.8 Interpretation of Data
35
3.9 Limitation of Research
35
References
36
CHAPTER 4
ANALYSIS OF DATA
4.1 Vietnamese accounting standards (VAS) responding

4.1.1 General overview
37
37
4.1.2 The actors
38
4.1.3 Evaluation the role of MOF in process of establishment VAS
38
4.1.4 Vietnamese accounting standards
39
4.2 Comparison between some typical VAS and IAS
41
4.2.1 VAS 02 and IAS 02
41
4.2.2 VAS 24 and IAS 07
42
4.2.3 VAS 25 and IAS 27
42
4.3 Analysis of primary data
43
4.3.1 Classification of the respondents of different job levels
43
4.3.2 Classification of the Respondents from Types of Companies
44
4.3.3 Test hypotheses
45
4.4.3.1 Awareness of Vietnamese Accountants
45
4.4.3.2 Practice of accounting treatments in some companies in

Vietnam responding to accounting harmonization
54
References
64
CHAPTER 5
CONCLUSION
5.1 Comparison between IAS and VAS
66
5.2 Awareness of Vietnamese accountants relating to accounting

harmonization
67
5.3 Accounting treatments in some companies in Vietnam
68
5.4 Recommendation
70
5.5 Scope for future research
71
BIBILIOGRAPHY
73
APPENDICES
81
LIST OF TABLES
Tables
Title
Page
Table 4-1
Four VAS issued and promulgated in 2001 and relating IAS
39
Table 4-2
Six VAS issued and promulgated in 2002 and relating IAS
39
Table 4-3
40
Table 4-4
40
Table 4-5
Four VAS issued and promulgated in 2005 and relating IAS
40
Table 4-6
Comparison between VAS 02 and IAS 02
41
Table 4-7
42
Table 4-8
43
Table 4-9
Classification of the respondents of Different job level
44
Table 4-10
Classification of the Respondents from Types of Companies
44
Table 4-11
Hear the term of accounting harmonization
46
Table 4-12
Perception of the training program for accountant to

improve their knowledge relating to international
accounting
47
Table 4-13
Perception of translating financial statements into English
48
Table 4-14
Accounting harmonization is the essential tool to develop in
50
global economy
Table 4-15
Accounting harmonization can reduce the gap amongst

different accounting systems in each country
51
Table 4-16
Accounting harmonization can take easy ability to adapt

than accounting standardization
52
Table 4-17
Accounting harmonization can encourage more global

economic activities
53
Table 4-18
Have a person can work with international accounting

standards
55
Table 4-19
Preparation cash flow statement per annual
56
Table 4-20
Having financial statements translated into English
57
Table 4-21
Duration companies have applied VAS in preparation

financial statements
58
Table 4-22
Preparation financial statements
59
Table 4-23
Application of VAS in accounting system
60
Table 4-24
Recruitment employees can prepare and understand the

financial statements in English
62
Table 4-25
Translating financial statements into English
63
LIST OF ABBREVIATIONS
Abbreviation
Full Name
AFA
ASC
ASEAN Federation of Accountants

Accounting Standards Council
ASEAN
Association of South East Asian nations
ASPC
Auditing Standards and Practices Council
BOA
Board of Accountancy
EFRAG
European Financial Reporting Advisory Group
EU
European Union
FEE
Federation des Experts Comptables Europeens
IAI
Indonesian Institute of Accountants
IAS
International Accounting Standards
IASB
International Accounting Standards Board
ICAAT
Institute of Certified Accountants and Auditors of Thailand
ICAEW
Institute of Charted Accountants of England and Wales
ICPAS
Institute of Certified Public Accountants of Singapore
IFAC
International Federation of Accountants
IFRS
International Financial Reporting Standard
ISAR
International Standard of Accounting and Reporting
MOF
Ministry of Finance
OECD
Organization for Economic Co-operation and Development
PICPA
Philippine Institute of Certified Public Accountants
VAS
Vietnam accounting standards
WTO
World Trade Organization
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In recent time, we often hear the term of globalization. This concept is becoming
the new trend all over the world. What is globalization? Generally, globalization is
the worldwide integration of some typical aspects (economy, technology, politic,
culture, and society) across countries to improve the collaboration amongst various
countries, and help each other on development (Sara Hamilton, 2009). In other
words, globalization leads to the in-depth influence on various aspects of modern
society. Often, when we call the term of globalization, we often imply the
economic globalization. As we known, accounting is the basic tool, as well as the
basic language to improve economic developments. Therefore, globalization raise the
big question: What is the most difficulty amongst typical accounting systems across
countries? Under the effect of globalization, accounting harmonization becomes a
big issue in worldwide picture. Thats why, accounting harmonization considered as
the main topic on current and heated discussion (Keegan, 1988).
Perception on accounting harmonization in rests of the world changes significantly

since more and more countries set up their accounting standards. Those standards
provide guidelines about application accounting system respond to international
accounting standards issued by the International Accounting Standards Board
(IASB). For examples: according to Jeffrey (1999) one of the top priorities of
Instituto Mexicao de Contadores Publicos (IMCP) of Mexico is to make
harmonization with International Accounting Standards (IAS); some other countries
such as Australia and countries in the European Union also have elected to adopt the
accounting standards issued by the IASB (Craig Deegan, 2009). In South East Asia,
some similar situations relating to making accounting harmonization are also
concerned. The Association of South East Asian nations (ASEAN) play the
important role to improve the economy amongst the countries of South East Asia.
This organization makes significant efforts for accounting harmonization through
ASEAN countries. This purpose is expressed through Federation of Accountants
(AFA). ASEAN tries to provide the guidelines and techniques to its members
professional accounting bodies about application of IAS effectively. As compared to
other countries, Vietnam takes significant steps to respond the impact of
globalization on accounting harmonization. Through this study, the researcher
attempts to provide the detailed information relating to accounting harmonization in
global economy and how Vietnam to respond this issue.
1.2 RESEARCH OBJECTIVES
This study is developed to explore the impact of how Vietnam response to

accounting harmonization in global economy. Accordingly, there are several
objectives discussed in this study:
First of all, the main objective is to provide all necessary information relating to the
accounting harmonization. The question: Why do we need to make accounting
harmonization in global economy? will be discussed. According to this study, the
researcher provides the general introduction of IASB and the role of IASB in making
accounting harmonization process of issuance IAS. Some advantages and
disadvantages of various countries of application IAS in international accounting
environment are also mentioned. In order to help readers understand about the topic,
accounting harmonization will be divided in to three levels including international
level, regional level, and national level (gupea.ub.gu.se). The first level (international
level) will support for the overview of accounting harmonization from the worlds
perspective. The next level (regional level) will provide some detailed information
relating to methods that typical regions response to accounting harmonization. At the
last level (national level), we discuss some significant efforts of each country to
reach the accounting harmonization.
The second objective is to clarify impact of reform process in 1986 on accounting

environment in Vietnam. That year is considered as the important point of economic
development in Vietnam. Vietnam carried out a reform process of changing its
centrally planned economy to a socialist market-oriented economy, liberalizing the
domestic economy and integrating with outside the world (dissertations.ub.rug.nl).
The reform process also encourages the initial step to establish Vietnamese
Accounting Standards (VAS) in accordance with accounting harmonization. In
addition, VAS and process of issuance of VAS are discussed. Moreover, the
researcher tries to compare some typical IAS and VAS.
The third objective is obtained from the view of accountants in finance and
accounting department of some companies in Vietnam. The researcher tried to design
ten questions to explore their awareness about international accounting, and making
Vietnam accounting policy harmonization with international accounting.
Furthermore, by conducting the research, the researcher intends to discuss more
factors causing impacts on application international accounting in Vietnam in
practice rather than collecting from the available sources. Some research hypotheses
are also will be developed and tested through the process of conducting research
using chi-square test. The researcher tries to provide the completed view about the
application international accounting in Vietnam through Vietnamese accountants
awareness, and response of some companies in Vietnam to accounting
harmonization.
1.3 PROBLEM STATEMENT
Nowadays, since the wave of global economy increases rapidly, this requires to
establish a main set of accounting environment for all countries to application
referred to IAS/IFRS. This process brings important meaning importance because
accounting harmonization is the basic tool reducing the gap across national
accounting polices. The main benefit of this process for improvement economic
integration activities amongst various countries whether those countries come from
the different parts or regions of the world.
Moreover, discussion about accounting harmonization has the special meaning for
Vietnam, since Vietnam joined World Trade Organization (WTO) on 11 January
2007(wto.org). By joining WTO, Vietnam went to the large ocean; Vietnam accepted
the competitive environment and expanding economic activities outside country.
Thus, accounting policy in Vietnam needs to be approached with international
accounting near by near (news.bbc.co.uk).
Within this study, the researcher provides more about understanding the issues of
Vietnam toward international accounting through some questions as follows:
Does Vietnam change accounting policy toward international accounting?
Does Vietnam have some significant efforts to make accounting

harmonization in global economy?
Is it benefit for Vietnam to reach accounting harmonization?
Does Vietnam set up Vietnam accounting standards in harmonization (VAS)

with IAS/IFRS?
What is the process to make accounting harmonization taking place in

Vietnam?
Does Vietnam need more necessary conditions in harmonization process?
Answering these questions above will help to expand understanding of current

accounting policy in Vietnam and its efforts to pursuit accounting harmonization.
1.4 LIMITATION OF THE STUDY
This study is limited to discussion on some specific of relating accounting area such
as: accounting standards, financial reports, inventories, cash flows and so on. It is
hard to cover all items of the issue here because it includes a broad range.
Furthermore, the limitations of time also make the researcher not to conduct this
study on all aspects relating to issue. Therefore, the researcher needs to select some
specific item to clarify and discuss to help the reader understand in the effective way
about all the necessary information relating to the topic in general.
1.5 ORGANIZATION OF THE RESEARCH
This study will be organized into five chapters. This is because the readers can
understand this paper on the logical way. Five chapters referred here as: introduction,
literature review, research methodology, analysis, and conclusion.
Chapter 1, with the title Introduction will mention the general picture about the
relating topic.
Chapter 2, with the title Literature review will provide all necessary information
relating to accounting harmonization. Some key factors of accounting harmonization
are the importance of accounting harmonization, the role of IASB, advantages and
disadvantages of accounting harmonization, and different levels of accounting
harmonization.
Chapter 3, with the title Research methodology will describe the research tools,
and data sources in conducting this study like as: primary data, secondary data, and
so on.
Chapter 4, with the title Analysis will analyze all the collected information (from
both of secondary and primary data) of how Vietnam responses to accounting
harmonization.
Chapter 5, with the title Conclusion will sum up and evaluate all the results from
this study, simultaneously propose some useful suggestions for further studies
relating to this similar issue.
CHAPTER 2
LITERATURE REVIEW
This chapter is developed to provide framework relating to accounting

harmonization. The aim of this chapter is to help the readers understand various
aspects around this term of international accounting harmonization. Accordingly, the
readers can develop their background relating to this topic.
2.1 THE IMPORTANCE OF ACCOUNTING HARMONIZATION

Belongs to this section, we approach the justifications of accounting harmonization.
In order to help the readers obtain this topic in the effective way, this section will be
divided into two subsections. The purpose of doing that is to explain of the need for
accounting harmonization. Moreover, the readers can distinguish between accounting
harmonization and accounting standardization clearly.
2.1.1 The need for accounting harmonization

The global economy developing rapidly leads to significant effects on accounting
environment. One of those effects is the barrier amongst different accounting rules in
each country when integrating global activities. This is because accounting is
considered as the language of business (Ph. Diaconu PAUL). Obviously, if different
countries flow the same accounting rules, the gap between accounting system in each
country will disappear (Craig Deegan, 2009). This issue leads to the global efforts for
establishment a set of accounting standards applied by different countries.
Accordingly, international accounting standards will open new horizon of evolution
(Anderson, 1993). Those standards will help the different financial information
between various companies become more relevant in the purpose of comparative
analyses or comparisons.
2.1.2 Distinguish between accounting harmonization and accounting

standardization.
In recent years, people always talk about international accounting. However, most of
them still confuse between accounting standardization and accounting
harmonization. Before understanding relating aspects of international accounting
harmonization, the readers need to know the basic feature of each concept.
The first concept known as accounting standardization referred to a more rigid and
narrow set of rules (Nobes and Parker, 2004). The implication under this term is
different countries need to follow the unique set of accounting rules, fundamental
principles, accounting standards without amendment and making adoption with
regulations in each country. The main advantage of using accounting standardization
is to use the consistent accounting systems amongst different countries, save time
and transfer cost. However, this also causes the main challenge for countries with
lower infrastructure of accounting policy than others.
The second concept is known as accounting harmonization. This concept includes

the similar characteristic with accounting standardization. However, accounting
harmonization is more flexible in which allows every country to establish its
accounting standards to meet its regulation based on international accounting
standards. As far as concern, accounting harmonization has to develop from the base
of accounting standardization (Weber, Cameron M., 1992) because we need the
framework of accounting standards first, and then different countries make
amendment for harmonization with international accounting standards. Based on this
fundamental advantage mentioned above, accounting harmonization is preferred by
most countries. The actor of issuance of international accounting standards, the
advantages and disadvantages of this concept, as well as the different level of
accounting harmonization will be discussed later.
2.2 THE ACTOR OF ISSUANCE IAS

International Accounting Standards Board (IASB) is considered as the independent
setting body of the International Accounting Standards (IAS) (iasb.org). The history
of IASB and the idea for accounting harmonization started from fifty years ago by
Henry Benson (Veron, 2007). Henry Benson was a former president of the Institute
of Charted Accountants of England and Wales (ICAEW). He wanted to see Canadian
Institute of Charted Accountants and the American Institute of Certified Public
Accountants approach to more intimate basis. He also repeated his implication in his
autobiography under the title Accounting for Life in 1989 (Craig Deegan, 2009).
More detailed, he identified about his ambition of making the dialogue between three
countries (United Kingdom, American, and Canada) to make them closer together
because these countries had the significant on accountancy at that time. Craig
Deegan mentioned more that three those bodies had established the International
Accounting Standards Committee (IASC) in 1973 and then created IASC
Foundation. The IASC foundation includes twenty-two trustees in which six are
appointed from North America, six from Europe, six from the Asia/Ocean region,
and four from any area (www.federalreserve.gov). International Accounting
Standards Board was developed in 2001 (en.wikipedia.org). There are fourteen
members of IASB, and any IAS need to be approved by at least a two-thirds majority
of members (Craig Deegan, 2009). IASB known as an independent standard setting
body housed in London (Jacob, RA., & Madu, C.N., 2009). From 1973 to 2000, IAS
were issued by the IASC, and also amended by IASB (www.iasplus.com). Some of
IASs has replaced with the new International Financial Reporting Standard (IFRS).
Until now, more than 100 countries have applied the accounting standards belongs to
IASB, event though each country need to conduct significant change in domestic
accounting system responding to international accounting standards.
2.3 ADVANTAGES OF ACCOUNTING HARMONIZATION

Accounting harmonization causes different advantages in global economy. However,
under the limitation of this study, the researcher tries to discuss some main
advantages around this concept. Accordingly, the readers can evaluate the usefulness
of accounting harmonization in the basic term.
According to Securities and Exchange Commission (SEC) in 2008, one of major

benefits of application IAS or IFRS is to increase comparability of financial
statements. Such comparability can reduce the misunderstanding of foreign financial
statements; hence this helps the companies save time and money (Ph. Diaconu
PAUL). Besides that, accounting harmonization serves the purpose of raising the
higher possible level. In addition, accounting harmonization is suitable with each

local economic, legal, and social condition (Choi, Frost and Meek, 1999).
Another advantage of accounting harmonization discussed here is an increase in

foreign mutual fund ownership among firms applied IAS (Covrig et al., 2007). In
other words, Samuels and Piper (1985) had the similar ideas. They also considered
that companies using IAS attracted more foreign investors (financial analyst and
foreign lenders) because investors could understand the financial statements. Once
they approached financial statements clearly, they compared the outcomes of each
investment opportunity and then made investment decisions. They often prefer
companies applied IAS for easy understanding their financial statements.
The last advantage of accounting harmonization discussed is to make higher

accounting quality. According to the examination of Barth et al, (2007), accounting
amounts come from the companies applied IAS are higher accounting quality than
others. The reason is application international accounting standard allows users to
conduct the competitive and effective analyses needed to run business easier, as well
as help the financial executives manage strong relationship with customers, outside
suppliers, and other stakeholders (O'Malley, 1993). Of course, we can see the group
of multinational companies gain the highest benefit based on this feature.
2.4 DISADVANTAGES OF ACCOUNTING HARMONIZATION
Analyses some of main disadvantages of accounting harmonization are necessary to

evaluate and complete the usefulness of this basic tool. The most fundamental of
challenges relating to harmonization are: different accounting practices in different
countries, lack of strong professional accountancy bodies in each country (especially
in some countries where accounting system is not consistent), different in political
and economic system (Nobes & Parker 2002).
In addition, the main users of accounting information come from different countries
causing obstacles for harmonization (Ira Yuta Chairas & Wirawan E.D. Radianto,
2001). For example the nature market in UK and US are the capitals markets, thus
the main users belong to these countries are the investors. In contrast, Germany and
other continental countries, the basic nature is not similar with the nature in UK and
US; hence the main users are tax authorities and government. Each type of users
requires different accounting information for relevant decision making. Therefore,
the big issue for accounting harmonization is how to satisfy all requirements of
different users across countries.
The next disadvantage comes from the different legal situation amongst various
countries. Accounting system is directly affected by legislation (Lawrence, 1996).
Accounting harmonization is difficult to suitable with all nations. Thus, each country
need to establish each accounting standards follow its regulation and legislation
based on international accounting standards. Accordingly, the process of accounting
harmonization takes time for preparation and application. The dynamic business
environment leads to the competition between countries to attract investors rapidly,
whereas process of accounting harmonization takes time. The business have to

minimize short time to focus, this will leads higher costs of harmonization.
2.5 DIFFERENT LEVELS OF ACCOUNTING HARMONIZATION

Most of professional accountancies recognize the benefits of accounting
harmonization. More than one concept of accounting harmonization, this term will be
discussed through three levels such as: international level, regional level, and
national level.
2.5.1 International level of accounting harmonization

As mentioned earlier, since 1970s, the idea of establishment IAS relating to
accounting harmonization was appeared and developed. The main setting body of
IAS is IAB. In addition, there are other several institutions joining in establishments
IAS might be listed here as: The Intergovernmental Working Group of Experts on
International Standard of Accounting and Reporting (ISAR) (en.wikipedia.org),
Organization for Economic Co-operation and Development (OEC) (www.oecd.org),
International Federation of Accountants (IFAC) (www.ifac.org).
The Intergovernmental Working Group of Experts on ISAR was established by the

UN Economic and Social Council in 1982 (www.nationsencyclopedia.com).
According to Lawrence (1996), this body made contribution on developing countries
to improve their accounting systems by enhancement accounting and financial
reporting. Then, IASB obtained information from ISAR as a consultative body in the
way to pursuing international accounting harmonization (Joshi, 1998).
Established in 1961, OECD now includes members 30 countries (www.biac.org).

The purpose of OECD is to promote the world trade and global activities (Angel,
Gurria OECD secretary-general, 2010). OECD established a Committee on
International Investment and MNEs. This working group conducted some necessary
research studies to assist IASB for the purpose of accounting harmonization
(Lawrence, 1996).
IFAC was established in 1977 (Christopher Humphrey, and Anne Loft, 2007). This
institution represents for 63 accountancy bodies of 51 countries. The main concern of
IFAC is to concentrate on globalization of accounting professions relating to
accounting ethics, management accounting, and so on. Accordingly, IFAC make
some significant efforts to harmonization accounting process between its members in
align with international accounting. Therefore, this process gains advantageous
points in global economics.
2.5.2 Regional level of accounting harmonization

International accounting is very different from each religion to each religion. In other
words, each typical religion causes influences on accounting practices (Hamid, Craig
and Clarke, 1993). There are two main religions having the significant impacts on
accounting harmonization referred as: European region, and ASEAN region.
The European Union (EU) (europa.eu) was created in 1950 by a number of treaties
as: Treaty of Paris in 1951 (www.unizar.es), Treaty of Rome in 1957
(www.historiasiglo20.org), and Euratom Treaty in 1957 (www.cnduk.org). Starting
from the ideas for freedom of market, The EU founders desired to create a closer a
single market context responding to accounting harmonization in Europe (Mueller,
1997). Among several Directives of EU, two most important Directives are: the
fourth directive and the seventh directive (Ira Yuta Chairas & Wirawan E.D.
Radianto, 2001). The main content of the Fourth Directive is to deal with all
accounts of single companies and other aspects of annual accounts (Fourth

Council Directive of 25 July 1978 - 78/660/EEC). The seventh Directive deals
with all the accounting system in consolidation (Seventh Council Directive of 13

June 1983 - 83/349/EEC). Some organizations of EU joining accounting
harmonization process amongst different companies in EU involved as:

European Financial Reporting Advisory Group (EFRAG), Federation des
Experts Comptables Europeens (FEE). The important contributions of EFRAG
relating to efforts of making accounting harmonization is attention into IASB
Working Group meetings as observers, regularly meetings with IASBs chairman,
participation in the World Standard Setters meetings organized by the IASB
(www.efrag.org). One of the most fundamental objectives of FEE is to enhance the
European Accountancy profession response to the international level of accounting
(www.fee.be).
The second region mentioned in this section is ASEAN region. ASEAN was
established on 8 August 1967 in Bangkok, Thailand (www.aseansec.org). The aim of
ASEAN is to improve economic activities in ASEAN community, and joining global
activities more effectively and efficiently. ASEAN Federation of Accountants
(AFA) was established in 1977. This is considered as the umbrella
organization including all the member countries national associations of

accounting bodies (Ira Yuta Chairas & Wirawan E.D. Radianto, 2001). Since
establishment, the AFA played the typical role in accounting harmonization in the
ASEAN since achievement accounting harmonization is one of the fundamental for
existence of AFA (Prem Yapa, 2004; Choi, 1979). Through AFA, ASEAN tried to
create the regional consistent accounting system based on the international
accounting, simultaneously, making appropriate changes with distinguished
regulation in each ASEANs member. Besides some efforts in pursuing accounting
harmonization, ASEAN dealt with some challenges. Not all members in ASEAN
have sufficient infrastructure accounting regulations and accounting institutions that
adopt with international accounting in a short time. In addition, each country in
ASEAN region is different from its awareness of the importance and the benefit of
accounting harmonization. The method of application accounting harmonization
selected in practice by ASEANs members is not similar, and this will cause some
obstacles (Prem Yapa, 2004).
2.5.3 National level of accounting harmonization

2.5.3.1 Some countries in ASEAN
Obviously, each country is different from its actions response to accounting
harmonization. The reason is distinguished features in each country including its
regulation, its culture, its historical background, and so on. For example, when one
typical country tries to pursue accounting harmonization, its main accountancy body
needs to select the most appropriate method of application IAS or establishment its
own accounting standards based on its policy and its accounting system. Under this
section, the researcher just summarizes some typical ASEAN countries.
We will discuss about the case of Indonesia first. Since 1957, the Indonesian Institute
of Accountants (IAI) is considered as the only organization for professional
accountants in Indonesia (www.acga-asia.org). IAI is a member of IFAC, IASB, and
AFA (Ira Yuta Chairas & Wirawan E.D. Radianto, 2001). In the Philippines, the
major institutions involved in the process of accounting harmonization are the Board
of Accountancy (BOA), the Philippine Institute of Certified Public Accountants
(PICPA), Accounting Standards Council (ASC), and Auditing Standards and
Practices Council (ASPC) (Ira Yuta Chairas & Wirawan E.D. Radianto, 2001). The
Institute of Certified Public Accountants of Singapore (ICPAS) is the national
organization of the accounting profession in Singapore (www.accountants.org.sg).
This institution shows the connections with regional and international professional
organizations (ASEAN Federation of Accountants, the Asia-Oceania Tax
Consultants' Association, and the International Federation of Accountants). Institute
of Certified Accountants and Auditors of Thailand (ICAAT) is the unique institution
for accounting profession in Thailand (www.iasplus.com). Each country mentioned
above took the necessary steps to establish its own accounting standards based on
international accounting standards with the assist of its main accounting professional
bodies. This study is developed to make the research relating to impact of accounting
harmonization on Vietnam, and how this country response to this concept. Therefore,
the detailed information about Vietnam will be discussed later.
2.5.3.2 Vietnam
In 1986, Vietnam has carried out a reform process all over aspects. To cope with
such a situation, the Vietnamese Communist Party decided to call economic is the
central feature (Sixth Vietnamese Communist Party, 1986). The purpose of this
reform process is to changing centrally planned economy to a socialist marketoriented economy (Le Khuong Ninh, 2003). This process will encourage Vietnam
joining more integrating activities with outside the world. Accordingly, this process
helps Vietnam get liberating with the domestic economy, accordingly improvement
Vietnam economic. Since the reform process was carried out in Vietnam, a new
economic system has been gradually established and developed including main
characteristics: creating a multi-ownership economy, expanding enterprise
autonomy, opening and developing joint-venture business with foreign partners. All
of them lead to changes in accounting environment in Vietnam. In order to reduce
the gap and difficulties between different accounting system in global economy,
Vietnam needs to response to accounting harmonization.
The accounting applied in Vietnam (1975 1989) was based on the accounting
policy issued by the Ministry of Finance in 1970 (The Decision No.425 TC/CDKT,
1970). After the economic reform process carried out over 3 years, the Ministry of
Finance issued the new accounting policy in 1989 and suspended the accounting
policy issued in 1970 (The decision No.212 TC/CDKT, 1989).
The reform processes of Vietnam in 1986 defined the initial steps to change its
accounting environment. The accounting system took the first step to establish in
establishment of one consistent system applied in the whole country, and approached
to international accounting step by step. The Ministry of Finance had been aware of
the vitality of such accounting standards. This institution responded to the economy
call by development a set of Vietnamese accounting standards based on international
accounting standards. With supports from the European Union through the EUROTAPVIET technical assistance program, since the early 90s, Vietnam prepared for a
legal framework for the accountancy profession, including the Vietnamese
Accounting Standards (Pro. Dr. Tran Van Ta, 2001).
CHAPTER 3
RESEARCH METHODOLOGY
This chapter describes the approach of how collection data for the purpose of
meeting objective of the study (Ranjit Kumar, 2005). This part of the research is
important because the research methodology help the researcher obtain the desired
objectives. The methods and strategies used will be mentioned in this chapter, as well
as some difficulties are expressed when conduction research.
3.1 RESEARCH OBJECTIVES

Objectives of any research needs to be defined clearly before collection relevant data.
Based on the main topic of this study, some objectives are summarized as follow.
To understand the background of accounting harmonization
To discuss the important need of accounting harmonization in global

economy
To distinguish between accounting harmonization and accounting

standardization
To determine the main actor of issuance IAS
To discuss some advantages and disadvantages of accounting harmonization
To determine three different levels of accounting harmonization
To determine the impact of reform process in 1986 on accounting

environment in Vietnam
To determine whether Vietnamese Accounting Standards responding to

accounting harmonization
To determine the awareness of Vietnamese accountants
To discuss how companies in Vietnam response to accounting harmonization
3.2 RESEARCH METHODOLOGY

In order to support the objectives of any research, data and information collected are
very important. The data and information were collected from two sources known as
primary data and secondary data, since entire primary or secondary data is not useful
and valid for any research.
3.2.1 Primary data

Based on the desired purpose of this study, the researchers collects primary data to
support the specific objectives of this study. In addition, the results from previous
research done by others can not support for this study in the detailed information.
Primary data takes many forms including questionnaire, interviews, focus group
interviews, observations, case-studies, diaries, critical incidents, and portfolios
(brent.tvu.ac.uk).
In this study, questionnaires will be used as the most effective way to collect
information. The main advantage of using questionnaires is lower cost in comparison
with other methods. Moreover, questionnaires might help the researcher collect a lot
of relevant data supporting for this study. Another benefit of using questionnaires is
questionnaires distribution in a wide range of respondents in many ways. Each
respondent will be provided a same paper of questions. Doing that helps the
researcher can collect the data precisely and easy to comparison. The researcher
develops the questionnaire in order to obtain the objectives of this study. The small
challenge when using questionnaires referred here as the time constrain. However,
the researcher needs to mange the time for distribution surveys and receipt the
answers in the reasonable time. The data collected from questionnaires might be
good without the bias.
3.2.2 Secondary data

If the primary data provides detailed information to support and interpret the desired
objectives, the secondary data bring the general overview relating to the concept. In
addition, secondary data expresses the available infrastructure relating topic.
Accordingly, the researcher can evaluate the results and determine which objective
need to be obtained by using primary data. The secondary data includes two types of
data: internal data sources, and external data sources (www.steppingstones.ca).
Internal data sources include data collected within the company such as financial
statements, and other reports. External data sources come from outside company.
Some items belong to secondary data are magazines, books, newspapers, webpage,
and so on. The secondary data will be collected at the minimal cost, since we can
easily use library or search the internet at laboratory or at home. However, the
secondary data only help the researcher understand the framework and theories
around the topic, and is not updated information. Therefore, in order to develop the
research well, the researcher needs to combine both types of data (primary data and
secondary data).
3.3 RESEARCH INSTRUMENT

Questionnaire is the basic tool for collection relevant information in this study, since
of some benefits received from using this instrument. The questionnaire needs to be
developed with high quality because this element will cause the effects on response
rate directly, and also on the validity of data collected. The researcher tries to
develop one set of questionnaire (including nine questions) supporting the aim of
researcher through two main points. The first point is awareness of Vietnamese
accountants. The second point is how companies in Vietnam respond to accounting
harmonization. For the purpose of respondents convenience, the researcher wants to
obtain the relevant information in the most effective way through one set of
questionnaires (completed survey in appendix I).
In order to attract the respondents and maximize the response rate, all the questions
might be designed in simple language for easy understanding. The questions were
established as short and in easy form. Accordingly, these questions encourage the
respondents eager to fulfill all of them. The budgeted time for completeness this set
of questionnaires is about ten to fifteen minutes.
In addition, at the beginning part of the questionnaires, the title and brief explanation
are also provided to help the respondents understand the topic easily. The following
statement is always stated to keep confidentiality for the respondents:
This survey is developed and distributed for this studys purpose only. Any answers
or results from this survey will be strictly kept under confidence and will not be used
for any other purpose. Thanks for your cooperation.
3.3.1Awareneess of Vietnamese accountants of accounting harmonization

In order to gather relating data relating about awareness of Vietnamese accountants
belong to accounting harmonization, the researcher collects answer form 4 questions
in questionnaires paper (question No.1. question No.2, question No.5, and question
No.8). At the top of these papers, the different job levels of accountants are also
expressed, since this information will support for the test hypothesis later. All of
these questions take easy form to fulfill in few minutes.
The questions focus on the awareness of accountants about the term of accounting
harmonization, and their degree perceptions relating this concept based on some
relevant elements. Such items are: training program for accountants to improve their
knowledge about international accounting, their ideas whether translating financial
statements into English, their extent about the benefits of accounting harmonization.
3.3.2 How companies in Vietnam respond to accounting harmonization

There are five questions supporting this idea listed here as question No. 3, question
No.4, question No.6, question No.7, and question No.9. Such questions also take
easy form, and help the respondents save time when fulfillment this set of
questionnaire. The different types of companies are also collected from information
involved for the purpose of test hypotheses.
Under this section, the questions concentrate on selected items accordance with
accounting harmonization like that: a person can work with international accounting
standards, cash flow statement, the process of translating financial statements into
English, the time of companies applied financial statements, and different companys
accounting treatments responding to accounting harmonization.
3.4 RESEARCH HYPOTHESES

There are four test hypotheses were established under this study. The test using to
examine the hypotheses is chi-square test of a contingency table with the significant
level chosen of 5%. The purpose of chi-square test is for examination if there is
enough evidence to show the relationship between two qualitative variables, and
indicate the differences among qualitative variables (Antony Selvanathan, et.al,
2004). H0 represents null hypothesis, and H1 represents alternative hypothesis. Four
hypotheses are listed as follow.
Hypothesis 1
H0: Senior accountants are more likely to aware about the importance of accounting
harmonization than junior accountants.
H1: Junior accountants are more likely to aware about the importance of accounting
harmonization than senior accountants.
Hypothesis 2
H0: Accountants do not have similar perceptions toward the benefit of accounting
harmonization.
H1: Accountants have similar perceptions toward the benefit of accounting

harmonization
Hypothesis 3
H0: Responding to accounting harmonization, there is no relationship between types
of firm and their accounting environments.
H1: Responding to accounting harmonization, there is a relationship between types of
firm and their accounting environments.
Hypothesis 4
H0: Companies do not have similar accounting treatments responding to accounting
harmonization
H1: Companies have similar accounting treatments responding to accounting
harmonization
3.5 DATA COLLECTION

In order to collect necessary information, the researcher spent about 10 weeks to
distribute survey and receipt answers from respondents. There are 47 companies and
163 accountants completed survey including. The survey will be distributed to
companies by the researcher and collected after few minutes or later. However, not
all companies fulfill this survey because they are the large firms or they are unable to
cooperate with the researcher.
3.6 SAMPLING
Because of time constrain and limited budget, the researcher can not conduct this
survey for all companies in Vietnam. Therefore, the researcher only carries out this
survey based for the companies located in Hanoi city and its urban.
3.6.1 Firms
All of the companies (small, medium, and large companies) come from different
types that the researcher wants to explore. In addition, the researcher can not conduct
this survey in other regions in Vietnam. The questionnaires were distributed to
manufacturing, banking, and other type of companies.
3.6.2 Accountants
Based on these information mentioned above, the sample of accountants include
accountants who are working in the sample of companies received surveys. Those
accountants come from different levels in each typical company.
3.7 RESPONSE RATE

The response rate is at the medium level for this survey. The researcher distributes
surveys to 115 companies including 313 accountants at different level of jobs.
However, only 47 companies including 163 accountants return the survey. Hence,
the response rate for companies is 40.9% and the response rate for accountants is
52.1%.
3.8 INTERPRETATION OF DATA
The researcher interprets the primary data and secondary data by the descriptions,
comparisons and analyses. For primary data, the researcher uses the typical
interpretation for chi-square test by comparison calculated value and critical value
for the decision of reject or not reject the null hypothesis.
3.9 LIMITATION OF RESEARCH

One of the limitations in this study is time constraining. The limitation of time does
not allow the researcher to explore all the relevant items of accounting
harmonization. Another limitation might come from the presentation of questions.
The questionnaires should be structured in the easier way for understanding. The last
limitation is the limitation relating language used in surveys. Most of Vietnamese
accountants are not good at English, except some senior accountants. Therefore, the
outcomes might be not evaluated at the most convenient way.
CHAPTER 4
ANALYSIS OF DATA
This chapter is designed for interpretation of data collected from working process. As
mentioned earlier, the collected information comes from two sources including
secondary data and primary data (questionnaire) conducted and distributed by the
researcher. All the results can be described at detailed information. They can help the
readers obtain the initial purposes, as well as the test hypotheses developed by the
researcher. Based on the typical features of this topic, the researcher decides to
organize this chapter into two main parts as analysis from secondary data, and
analysis from primary data. The reason for this disposition is to help the readers get
the information logically for more effective understanding. Through the analysis of
secondary data, the readers can know about the framework of current Vietnamese
accounting environment. For example: the requirement for accounting harmonization
by effects of reform process in Vietnam; the main actors playing the important role
in making accounting harmonization in Vietnam and implementation of VAS based
on IAS; comparisons between some typical VAS and IAS. Moreover, analysis from
primary data can help the readers explore the awareness of Vietnamese accountants
responding accounting harmonization, and the application of VAS in some
companies in Vietnam.
4.1 VIETNAMESE ACCOUTING STANDARDS (VAS) RESPONDING TO

ACCOUNTING HARMONIZATION
4.1.1 General overview
In general, accounting standard is a set of principles for guidelines of recording
journal entries and preparation financial statements. Establishment of VAS based on
the similar purpose. VAS is a set of regulations and guidelines relating to
fundamental principles, contents, methods and procedures for recording accounting
transactions and disclosure of financial statements. Accordingly, users can evaluate
the financial situation and operating results of each company in the way of true and
fair view.
4.1.2 The actors
Vietnamese Accounting Standards (VAS) was issued and promulgated under the
direction of Ministry of Finance (MOF) under the Decision No. 38/2000QD-BTC
(2000). According to Article 1 belongs to this decision defined that VAS developed
on the basic of IAS and IFAC (International Federation of Accountants). Therefore,
the nature of VAS started from IAS. This described that Vietnam had the effective
effort to make its accounting standards harmonization with international accounting.
4.1.3 Evaluation the role of MOF in process of establishment VAS

Before establishment of VAS, all accounting methods were applied in Vietnam in
accordance with Vietnamese Accounting system (Francis B. Narayan. et al., 2000).
The accounting Policy Department of MOF developed 10 draft Accounting
Standards in process of finalization. Those drafts based on the Vietnamese regulation
and considered IAS as the base with minimized adjustments. Therefore, VAS reflects
the characteristic of IAS and becomes the basic tool to make Vietnamese accounting
system in accordance with international accounting. Until now, MOF issued 26 VAS
into 5 series in 2001, 2002, 2003, and 2005. The detailed information and relating
Decision of MOF will be presented in Appendix.
4.1.4 Vietnamese Accounting Standards

Under this part of chapter, the researcher listed all 26 Vietnamese Accounting
Standards relating to International Accounting Standards. All of these standards are
summarized into 5 tables as follow. Thus, the readers can have the general overview
of VAS. References of working process are retrieved from two sources as follow:
Source 1: website http://www.accountancy.com.pk/reference_ias.asp?id=16
Source 2: Tran Van Ta. Et al., 2002. Vietnamese Standards on Accounting, Finance
Publisher. [Vol 1-5]
Table 4-1: Four VAS issued and promulgated in 2001 and relating IAS
No. VAS
VAS 02: Inventories
1
IAS
IAS 02: Inventories
VAS 03: Tangible fixed assets
IAS 16: Property, Plant, and Equipment
VAS 04: Intangible fixed assets
IAS 38: Intangible assets
VAS 04: Revenues and other

incomes
IAS 18: Revenue
Table 4-2: Six VAS issued and promulgated in 2002 and relating IAS
No.
1
2
3
4
5
6
VAS
VAS 01: Framework
VAS 06: Leases
VAS 10: Effects of changes in
foreign exchange rates
VAS 15: Construction contract
VAS 16: Borrowing costs
VAS 24: Cash Flow Statement
IAS
Framework
IAS 17: Leases
IAS 21: Effects of changes in foreign
exchange rates
IAS 11: Construction contract
IAS 23: Borrowing costs
IAS 07: Cash Flow Statement
No. VAS
VAS 05: Investment Property
1
VAS 07: accounting for
2
investment in Associates
VAS 08: Financial reporting of
3
interests in Joint Ventures
VAS 21: Presentation of Financial
4
statements
VAS 25: Consolidated Financial
5
Statement and accounting for
investments in subsidiaries
VAS 26: Related Party Disclosure
6
IAS
IAS 40: Investment Property
IAS 28: accounting for investment in
Associates
IAS 31: Financial reporting of interests in
Joint Ventures
IAS 01: Presentation of Financial
statements
IAS 27: Consolidated Financial Statement
and accounting for investments in
subsidiaries
IAS 24: Related Party Disclosure
No. VAS
VAS 17: Income taxes
1
VAS 22: Disclosure in Financial
2
Statement of Banks and similar
Financial Institutions
VAS 23: Events after the Balance
3
sheet date
VAS 27: Interim Financial
4
Reporting
VAS 28: Segment reporting
5
VAS 29: Changes in accounting
6
policies, Accounting Estimates
and errors
IAS
IAS 12: Income taxes
IAS 30: Disclosure in Financial
Statement of Banks and similar Financial
Institutions
IAS 10: Events after the Balance sheet
date
IAS 34: Interim Financial Reporting
IAS 14: Segment reporting
IAS 08: Changes in accounting policies,
Accounting Estimates and errors
Table 4-5: Four VAS issued and promulgated in 2005 and relating IAS
No. VAS
VAS 11: Business Combination
1
VAS 18: Provision, Contingent
2
Liabilities and Contingent Assets
VAS 19: Insurance contracts
3
VAS 30: Earnings per share
4
IAS
IAS 22: Business Combination
IAS 37: Provision, Contingent Liabilities
and Contingent Assets
IAS 33: Earnings per share
4.2 COMPARISION BETWEEN SOME TYPICAL VAS AND IAS

4.2.1 VAS 02 and IAS 02
In general, VAS 02 is similar with IAS 02 since the content of VAS 02 established
based on the detailed information of IAS 02. Table 4-6 is supported for this
explanation. Some basic characteristics between two accounting standards are
summarized by the researcher to help the readers obtain their understanding easily.
Table 4-6: Comparison between VAS 02 and IAS 02

Items
Name
VAS 02
Inventories
IAS 02
Inventories
Objective
Description accounting
treatments for inventories
Defining accounting transactions

of inventories
Fundamental
principles
Inventories are determined at

cost. In the case of lower net
realizable value, inventories
are determined at net
realizable value
The costs of inventories are

recognized at the lower of cost
and net realizable value
Measurements
Similar measurements based

on IAS 02
Including costs of purchase, costs

of conversion and other costs
incurred to make inventories for
use
Methods
Similar methods based on IAS 4 methods: specific

identification; weighted average;
02
first-in, first-out; last-in, first-out
(Source 1: Tran Van Ta. Et al., 2002. Vietnamese Standards on Accounting, Finance
Publisher. [Vol 1](pp 139-150)
(Source 2: http://www.ilkerbulat.com/Icerik/File/IlkerStudy-IAS2-INVENTORIES.pdf)
4.2.2 VAS 24 and IAS 07

As discussed earlier, the content of VAS 24 reflects the content of IAS 07, and some
points of two accounting standards are illustrated in table 4-7. Readers can base on
some basic points for the purpose of comparison between VAS 24 and IAS 07.

Items
VAS 24
IAS 07
Name
Cash Flow Statement
Cash Flow Statement
Objective
Description principles and

procedures of preparation and
presentation of cash flow
statement
Presentation historical changes in

cash and cash equivalents
Presentation
Reporting cash flows during

the financial period classified
by operating, investing, and
Including three activities:

operating, investing, and
Methods for
operating
activities
financing activities
financing activities
Direct method and indirect

method
Direct method
method
and
indirect
(Source 2: http://www.iasplus.com/standard/ias07.htm)
4.2.3 VAS 25 and IAS 27

Consolidated financial statement is the new concept for Vietnamese accounting
environment in recent years. The detailed information relating to consolidated
financial statements were established under the VAS 25. This accounting standard is
set up based on the IAS 27; however VAS 25 is suitable with Vietnamese regulation.
Some key points between two accounting standards are discussed in table below.
Items
VAS 25
IAS 27
Name
Consolidated Financial
Statement and accounting for
Consolidated Financial Statement

and accounting for investments in
subsidiaries
Objective
Description the principles and

methods of preparation and
presentation the consolidated
financial statements
Preparation and presentation the

consolidated financial statements
Key concepts
Control; a subsidiary, a
parent, a group, consolidated
financial statements, minority
interest
Control; a subsidiary, a parent,

consolidated financial statements
Presentation
Consolidated financial
statements should be
presented by a parent
Consolidated financial statements

presented by a parent in which it
consolidates its investments in
subsidiaries
Consolidated financial
statements should consolidate
all subsidiaries, foreign and
Providing accounting for

The consolidated accounts

including all of the parent's
Procedures
domestic
subsidiaries, both domestic and

foreign
Intra-group transactions
(sales, expense), and intragroup balances relating
unrealized profit/loss should
be eliminated
Intra-group events relating to

transactions, income, and
expenses should be eliminated
(Source 2: http://www.iasplus.com/standard/ias27.htm)
4.3 ANALYSIS PRIMARY DATA

4.3.1 Classification of the respondents of different job levels
From the information of respondent, the sample size of accountants is 163
respondents. This survey was distributed for approximately 313 accountants;
therefore the response rate is 52.1%. According to table 4-9, the information of the
sample shows that the majority of the sample is junior accountants (81%), whereas
the senior accountants make up 19%.
Table 4-9 Classification of the respondents of Different job level
Different job
level
Number of
Respondents
Percentage of Total
Senior
accountants
31
19.0
Junior
accountants
132
81.0
Total
163
100.0
(Sources: Primary data)
4.3.2 Classification of the Respondents from Types of Companies
There are 115 companies that received this survey; however 47 of them were
returned this survey. Thus, the response rate is 40.9%. Table 4-10 provides the
detailed information relating to different types of companies from the sample. The
majority of the respondents (46.8%) fall within the banking category. Two remain
types of companies are 29.8% (others), and 23.4% (manufacturing).
Table 4-10 Classification of the Respondents from Types of Companies

Types of companies
Number of respondents
Percentage of Total
Manufacturing
11
23.4
Banking
22
46.8
Others
14
29.8
total
47
100.0
4.3.3 Test Hypotheses

There are four hypothesis tested for the purpose of testing the awareness of
Vietnamese accountants about the importance of accounting harmonization, and
testing practice of accounting treatments in some companies in Vietnam responding
to accounting harmonization.
4.4.3.1 Awareness of Vietnamese Accountants

Hypothesis 1
H0: Senior accountants are more likely to aware about the importance of accounting
harmonization than junior accountants.
H1: Junior accountants are more likely to aware about the importance of accounting
harmonization than senior accountants.
Hypothesis 1 is tested by three statements relating to the importance of accounting

harmonization. The detailed outcomes are analyzed as follow.
From table 4-11, the majority of respondents (71.1%) show that accountant
always/often heard the term of accounting harmonization. The remaining percentage
(28.9%) describe that they sometimes hear the term of accounting harmonization. It
is observed that among 71.1% respondents, 55.8% are junior accountant, and 15.3%
are senior accountants. In addition, 5.5% senior accountants and 27.6% junior
accountants always hear the term of accounting harmonization; 9.8% senior
accountants and 28.2% junior accountants often hear the term of accounting
harmonization. On the other hand, 3.7% of senior accountants and 25.2% of junior
accountants sometimes hear the term of accounting harmonization.
The calculated value (C.V.) of chi square test from table 4-11 is 3.244. The critical
value relating to degree of freedom (2) and significant level ( = 0.05) is 5.99147.
Therefore, the null hypothesis (H0) is not rejected since the calculated value is lower
than critical value. It is implicated that senior accountants are more likely to aware
about the term of accounting harmonization than junior accountants.
Table 4-11 Hear the term of accounting harmonization
Different job level
Statements
Always hear the term of accounting
harmonization
Often hear the term of accounting
harmonization
Senior
Junior
Total
45
54
(5.5%)
(27.6%)
(33.1%)
16
46
62
(9.8%)
(28.2%)
(38.0%)
Sometimes hear the term of accounting

harmonization
Total
41
47
(3.7%)
(25.2%)
(28.9%)
31
132
163
(19.0%)
(81.0%)
(100.0%)
According to table 4-12, there is 43.0% respondents think that training program for
accountants to improve their knowledge relating to international accounting is very
useful, whereas 33.1% of respondent think such program is useful. There is only
23.9% of respondents think that program is not useful. Moreover, 17.2% senior
accountants and 58.9% junior accountants consider that program is very useful or
useful. In contrast, 1.8% senior accountants and 22.1% junior accountants think that
training program is not useful.
The calculated value (C.V.) of chi square test obtained from table 4-12 is 15.302.
The critical value relating to degree of freedom (2) and significant level ( = 0.05) is
5.99147. Therefore, the null hypothesis (H0) is rejected since the calculated value is
higher than critical value. Junior accountants are more likely to aware about the
training program for accountants relating to international accounting than senior
accountants.
Table 4-12 Perception of the training program for accountant to improve their
knowledge relating to international accounting
Different job level
Perception available
Senior
Junior
Total
Training program is very useful
Training program is useful
Training program is not useful
Total
23
47
70
(14.1%)
(28.9%)
(43.0%)
49
54
(3.1%)
(30.0%)
(33.1%)
36
39
(1.8%)
(22.1%)
(23.9%)
31
132
163
(19.0%)
(81.0%)
(100.0%)
Table 4-13 shows that the majority of respondents (43.0%) think that translating
financial statements into English is necessary, whereas 28.8% of respondents think
that translating financial statements into English is very necessary and only 28.2%
think doing that is not necessary. The majority percentage of junior accountants
(31.4%) and senior accountants (11.6%) also fall within the necessary category.
There is only 3.1% senior accountant think that translating financial statements into
English is not necessary, whereas 25.1% junior accountants have the similar
consideration.
The calculated value (C.V.) of chi square test under table 4-13 is 5.508. The critical
Therefore, the null hypothesis (H0) is not rejected since the calculated value is less
than critical value. Senior accountants are more likely to aware about the translating
financial statements into English than junior accountants.
Table 4-13 Perception of translating financial statements into English
Different job level

Perception available
Translating financial statements into
English is very necessary
English is necessary
English is not necessary
Total
Senior
Junior
Total
40
47
(4.3%)
(24.5%)
(28.8%)
19
51
70
(11.6%)
(31.4%)
(43.0%)
41
46
(3.1%)
(25.1%)
(28.2%)
31
132
163
(19.0%)
(81.0%)
(100.0%)
Hypothesis 2
H0: Accountants do not have similar perceptions toward the benefit of accounting
harmonization.
H1: Accountants have similar perceptions toward the benefit of accounting
harmonization
Hypothesis 2 is tested by four factors relating to different benefits of accounting
harmonization. The detailed results are described below.
As defined in table 4-14, the majority respondents (81.5%) strongly agree or agree
with the statement that accounting harmonization is the essential tool to develop in
global economy. Within this amount, 14.7% of senior accountants strongly agree or
agree with statement mentioned above, whereas 66.8% of junior accountants have
the similar perception. In contrast, 1.8% senior accountants and 4.9% junior
accountants disagree or strongly disagree with this idea. In addition, there are still
2.5% senior accountants and 9.2% junior accountants neither agree nor disagree with
this statement.
Hence, the null hypothesis (H0) is not rejected since the calculated value is lower than
critical value. This implies that accountants do not have similar perceptions toward
accounting harmonization relating to essential tool to develop in global economy.
Table 4-14 Accounting harmonization is the essential tool to develop in global

economy
Response
Job level
Senior
Junior
Total
Strongly
agree
Neutral
Disagree
Strongly
Disagree
Total
Agree
18
31
(11.0%)
(3.7%)
(2.5%)
(1.2%)
(0.6%)
(19.0%)
100
15
132
(61.3%)
(5.5%)
(9.2%)
(3.1%)
(1.8%)
(81.0%)
118
15
19
163
(72.3%)
(9.2%)
(11.7%)
(4.3%)
(2.4%)
(100.0)
From table 4-15, most of the respondents (63.8%) agree that accounting
harmonization can reduce the gap amongst different accounting systems in each
country (including 10.4% of senior accountants and 53.4% of junior accountants).

There are only 3.0% of respondents strongly disagreeing with this statement;
however 8.6% of respondents disagree with this advantage of accounting
harmonization (0.6% of senior accountants and 8.0% of junior accountants). There
are still respondents who give the neutral answers (8.6%); however this percentage is
not significant.
The calculated value (C.V.) of chi square test based on the detailed information in
table 4-15 is 6.016. The critical value relating to degree of freedom (4) and
significant level ( = 0.05) is 9.48773. As we consider, the calculated value is lower
than critical value, the null hypothesis (H0) is not rejected. This infers that
accountants do not have similar perceptions that accounting harmonization can
reduce the gap amongst different accounting systems in each country.
Table 4-15 Accounting harmonization can reduce the gap amongst different
accounting systems in each country
Response
Job level
Senior
Junior
Total
Strongly
agree
Neutral
Disagree
Strongly
Disagree
Total
Agree
17
31
(3.7%)
(10.4%)
(3.1%)
(0.6%)
(1.2%)
(19.0%)
20
87
13
132
(12.3%)
(53.4%)
(5.5%)
(8.0%)
(1.8%)
(81.0%)
26
104
14
14
163
(16.0%)
(63.8%)
(8.6%)
(8.6%)
(3.0%)
(100.0)
According to table 4-16, the percentages of respondents disagree that accounting

harmonization can take easy ability to adapt than accounting standards are significant
(32.5%). In addition, the respondent neither agrees nor disagrees in this test is
(38.6%). On the other hand, the percentage of respondents who strongly agree or
agree is 20.3% (including 6.8% of senior accountants and 13.5% of junior
accountants). Moreover, the majority of respondents (41.1%) falls within disagrees
or strongly disagree category (2.4% senior accountants and 38.7% junior
accountants).
The calculated value (C.V.) of chi square test obtained from table below is 15.673.
The critical value relating to degree of freedom (4) and significant level ( = 0.05) is
9.48773. Therefore, the null hypothesis (H0) is rejected since the calculated value is
higher than critical value. It is implicated that accountants have similar perceptions
toward the advantage of accounting harmonization in comparison with accounting
standardization.
Table 4-16 Accounting harmonization can take easy ability to adapt than
accounting standardization
Response
Job level
Senior
Junior
Total
Strongly
agree
Neutral
Disagree
Strongly
Disagree
Total
Agree
16
31
(4.3%)
(2.5%)
(9.8%)
(1.2%)
(1.2%)
(19.0%)
10
12
47
51
12
132
(6.1%)
(7.4%)
(28.8%)
(31.3%)
(7.4%)
(81.0%)
17
16
63
53
14
163
(10.4%)
(9.9%)
(38.6%)
(32.5%)
(8.6%)
(100.0)
From table 4-17, the significant percentages of respondents (86.4%) strongly agree
and agree that accounting harmonization can encourage more global economic
activities. This group is made up from 15.3% of senior accountants and 71.1% of
junior accountants. On the other hand, the category of disagree or strongly disagree
regarding this statement is only 4.9% of respondents including 1.8% of senior
accountants and 3.1% of junior accountants. The percentage of respondents neither
agree nor disagree in this test is not significant (8.5%) made up from 1.8% senior and
6.7% junior.
The calculated value (C.V.) of chi square test getting from table 4-17 is 33.369. The
critical value relating to degree of freedom (4) and significant level ( = 0.05) is
9.48773. In comparison between the calculated value and critical value, the null
hypothesis (H0) is rejected because of higher calculated value. It is inferred that
accountants have similar perceptions toward the advantage of encouraging more
global economic activities of accounting harmonization.
Table 4-17 Accounting harmonization can encourage more global economic
activities
Response
Job level
Senior
Junior
Strongly
agree
Neutral
Disagree
Strongly
Disagree
Total
Agree
17
31
(10.4%)
(4.9%)
(1.8%)
(0.6%)
(1.2%)
(19.0%)
18
98
11
132
Total
(11.0%)
(60.1%)
(6.7%)
(2.5%)
(0.6%)
(81.0%)
35
106
14
163
(21.4%)
(65.0%)
(8.5%)
(3.1%)
(1.8%)
(100.0)
4.4.3.2 Practice of accounting treatments in some companies in Vietnam

responding to accounting harmonization
Hypothesis 3
H0: Responding to accounting harmonization, there is no relationship between types
of firm and their accounting environments.
H1: Responding to accounting harmonization, there is a relationship between types of
firm and their accounting environments.
Hypothesis 3 is tested by four elements regarding accounting environments in firms
responding to accounting harmonization. The detailed outcomes are discussed as
follow.
As clarified by table 4-18, most of companies do not have a person can work with
international accounting standards (76.6%), where as only 23.4% of companies
tested have a person can work with international accounting standards. More detailed
information, there are 8.5% of manufacturing, 10.6% of banking, and 4.3% others
belong this category of having the people work with international accounting
standards. The remaining category is made up from 14.9% of manufacturing, 36.25

of banking, and 25.5% others.
Thus, the null hypothesis (H0) is not rejected since the calculated value is less than
critical value. We can conclude that there is no relationship between types of firm
and their accounting environments relating to having a person can work with
international accounting standards responding to accounting harmonization.
Table 4-18 Have a person can work with international accounting standards
Types of companies
Manufacturing
Banking
Others
Total
Yes
No
Total
11
(8.5%)
(14.9%)
(23.4%)
17
22
(10.6%)
(36.2%)
(46.8%)
12
14
(4.3%)
(25.5%)
(29.8%)
11
36
47
(23.4%)
(76.6%)
(100.0%)
According to table 4-19, preparation cash flow statement per annual plays an
important role in each firm because of majority respondents (87.3%) giving yes
answer. Belong this category; there are 17.1% manufacturing, 44.7% banking, and
25.5% others. However, there is still 12.7% of respondents tested do not have the
similar consideration (including 6.4% manufacturing, 2.1% banning, and 4.2%
others).
Hence, the null hypothesis (H0) is not rejected since the calculated value is lower than
critical value. The conclusion might be developed that there is no relationship
between types of firm and their accounting environments regarding to factor of
preparation of cash flow statement per annual responding to accounting
harmonization.
Table 4-19 Preparation cash flow statement per annual
Types of companies
Manufacturing
Banking
Others
Total
Yes
No
Total
11
(17.1%)
(6.4%)
(23.4%)
21
22
(44.7%)
(2.1%)
(46.8%)
12
14
(25.5%)
(4.2%)
(29.8%)
41
47
(87.3%)
(12.7%)
(100.0%)
As showed by table 4-20, the significant percentages of respondents (70.1%) do not

have financial statements translated into English. This group is made up from 19.1%
manufacturing, 34.0% banking, and 17% others. On the other hand, 29.9% of
respondents show that they have financial statements translated into English.
According to this group, banking and others give the highest percentage of
respondent (12.8% for each), the remaining proportion of manufacturing is only
4.3%.
The calculated value (C.V.) of chi square test obtained from table 4-20 is 1.921. The
5.99147. By comparison between the calculated value and critical value, the null
hypothesis (H0) is not rejected because of lower calculated value. Hence, there is no
relationship between types of firm and their accounting environments regarding to
factor of preparation of having financial statements translated into English
responding to accounting harmonization.
Table 4-20 Having financial statements translated into English
Types of companies
Manufacturing
Banking
Others
Total
Yes
No
Total
11
(4.3%)
(19.1%)
(23.4%)
16
22
(12.8%)
(34.0%)
(46.8%)
14
(12.8%)
(17%)
(29.8%)
14
33
47
(29.9%)
(70.1%)
(100.0%)
From table 4-21, we analyze the time of companies for application VAS in
preparation financial statements. Over half of respondents (55.3%) giving the answer
depend on which VAS applied including highest proportion belong banking of
25.5%. There is only 12.8% of respondents applied VAS under 5 years. In contrast,
31.9% of respondents applied VAS over 5 years made up from 8.5% of
manufacturing, 14.9% banking, and 8.5% others.
The calculated value (C.V.) of chi square test getting from table 4-21 is 0.2817. The
9.48773. Thus, the null hypothesis (H0) is not rejected since the calculated value is
lower than critical value. The conclusion is there is no relationship between types of
firm and their accounting environments regarding to element of duration companies
applied VAS in preparation financial statements.
Table 4-21 Duration companies have applied VAS in preparation financial
statements
Times
Types of
companies
Manufacturing
Banking
Others
Total
Over 5 years
Under 5 years
Depend on
which VAS
applied
Total
11
(8.5%)
(2.1%)
(12.8%)
12
(14.9%)
(6.4%)
(25.5%)
(8.5%)
(4.2%)
(17.0%)
15
26
(31.9%)
(12.8%)
(55.3%)
(23.4%)
22
(46.8%)
14
(29.8%)
47
(100.0%)
Hypothesis 4
H0: Companies do not have similar accounting treatments responding to accounting
harmonization
H1: Companies have similar accounting treatments responding to accounting
harmonization
Hypothesis 4 is tested based on four different accounting treatments in each firm
relating to accounting harmonization. The detailed results are considered below.
As we can see on table 4-22, most of proportions of respondents (91.6%) think that a
preparation financial statement is important and fairly important. Belong to this
group, highest percentage of respondents (44.7%) falls within banking, whereas the
percentage of manufacturing is 19.2%, and the percentage of others is 27.7%. The
proportion of companies think that preparation of financial statements is not
important only accounted of 8.4% including 4.2% of manufacturing, the same
percentage (2.1%) for banking and others.
The calculated value (C.V.) of chi square test based on detailed information in table
4-22 is 10.07. The critical value relating to degree of freedom (4) and significant
level ( = 0.05) is 9.48773. Therefore, the null hypothesis (H0) is rejected because the
calculated value is higher than critical value. The implication is considered that
companies have similar accounting treatments regarding element of preparation
financial statements responding to accounting harmonization.
Table 4-22 Preparation financial statements
Types of companies
Important
Manufacturing
Banking
Total
11
(12.8%)
(6.4%)
(4.2%)
(23.4%)
15
22
(31.9%)
(12.8%)
(2.1%)
(46.8%)
10
14
(6.4%)
(21.3%)
(2.1%)
(29.8%)
24
19
47
(51.1%)
(40.5%)
(8.4%)
(100.0%)
Others
Total
Fairly
Not
important important

As defined by table 4-23, most of companies (76.7%) consider application of VAS in
accounting system is important. This category includes 36.2% banking, 21.3%
others, and 19.2% manufacturing. In addition, the respondents giving the answer
regard this element is fairly important accounted of 14.9% with highest percentage of
6.4% for banking or others, whereas the remaining percentage of 2.1% is belong
manufacturing. On the other hand, only 8.4% of respondents consider that
application of VAS in accounting system is not important; however this proportion is
not significant.
The calculated value (C.V.) of chi square test based from table 4-23 is 0.8012. The
9.48773. The null hypothesis (H0) is not rejected because of lower calculated value.
Thus, companies do not have similar accounting treatments relating to element of
application of VAS in accounting system responding to accounting harmonization.
Table 4-23 Application of VAS in accounting system
Types of companies
Important
Manufacturing
Banking
Others
Total
Fairly
Not
important important
Total
11
(19.2%)
(2.1%)
(2.1%)
(23.4%)
17
22
(36.2%)
(6.4%)
(4.2%)
(46.8%)
10
14
(21.3%)
(6.4%)
(2.1%)
(29.8%)
36
47
(76.7%)
(14.9%)
(8.4%)
(100.0%)

As defined by table 4-24, most of companies (80.9%) consider that recruitment
employees can prepare and understand the financial statements in English are fairly
important and important. Based on this amount, 17% of respondents belong to
manufacturing, 44.7% of respondents belong to banking, and 19.2% of respondents
belong to others. On the other hand, there is only 19.1% of companies consider this
factor is not important. This proportion is made up from 6.4% manufacturing, 2.1%
banking, and 10.6% others.
value relating to degree of freedom (4) and significant level ( = 0.05) is 9.48773. By
comparison between calculated value and critical value, we can conclude that the
null hypothesis (H0) is not rejected because of lower calculated value. This is implied
that companies do not have similar accounting treatments relating to factor of
recruitment employees can prepare and understand the financial statements in
English.
Table 4-24 Recruitment employees can prepare and understand the financial
statements in English
Types of companies
Important
Manufacturing
Total
11
(6.4%)
(10.6%)
(6.4%)
(23.4%)
14
22
(14.9%)
(29.8%)
(2.1%)
(46.8%)
14
(2.1%)
(17.1%)
(10.6%)
(29.8%)
11
27
47
(23.4%)
(57.5%)
(19.1%)
(100.0%)
Banking
Others
Total
Fairly
Not
important important
Based on detailed information in table 4-25, the majority of respondents (36.2%)

think that translating financial statements into English are important including 27.7%
banking, 6.4% manufacturing, and 2.1% others. The numbers of respondents think
that this factor is fairly important accounted 29.8% with the highest percentage
(12.8%) belongs to other types of company. In contrast, the proportion of
respondents who think that translating financial statements into English not
important accounted 34.0% (14.9% of other types of company, 10.6% of

manufacturing, and 8.5% of banking).
Therefore, the null hypothesis (H0) is rejected since the calculated value is higher
than critical value. The implication can be developed as companies have similar
accounting treatments regarding element of translating financial statements into
English
Table 4-25 Translating financial statements into English
Types of companies
Important
Manufacturing
Banking
Total
11
(6.4%)
(6.4%)
(10.6%)
(23.4%)
13
22
(27.7%)
(10.6%)
(8.5%)
(46.8%)
14
(2.1%)
(12.8%)
(14.9%)
(29.8%)
17
14
16
47
(36.2%)
(29.8%)
(34.0%)
(100.0%)
Others
Total
Fairly
Not
important important
CHAPTER 5
CONCLUSION
This chapter concentrates on discussion of the results collected in the previous

chapter. As far as concern, recommendation and scope for future research also
clarified.
5.1 COMPARISION BETWEEN IAS AND VAS

As discussed earlier, VAS is developed on the basic of IAS and IFAC. Until now,
MOF established and amended 26 VAS. These standards reflect fundamental
characteristics of IAS; however, they are amended under the Vietnamese policy and
regulation. Therefore, VAS is considered as the most persuasive proof of accounting
harmonization process in Vietnam. Through comparisons three selected VAS
(No.02, No.24, and No.25) and IAS (No.02, No.07, and No.27); we can conclude
that the nature of VAS is IAS. Vietnam now has the solid infrastructure of
accounting environment to pursue global activities; especially Vietnam is the
member of regional organization, and international organization. Accordingly, the
researcher desires to discuss awareness of Vietnamese accountants relating to
accounting harmonization, as well as practical applications accounting treatments in
some companies in Vietnam. The reason for doing this study might be logical. As we
know, VAS is only the result of efforts by MOF for harmonization process in paper.
More detailed, the researcher tries to evaluate the practical applications, rather than
looking at theoretical paper. The purpose of this study is to explore harmonization
process in practice, and provide the precaution for future research in relating topic.
5.2 AWARNESS OF VIETNAMESE ACCOUNTANTS RELATING TO

ACCOUNTING HARMONIZATION
The exploration of Vietnamese accountants awareness about accounting
harmonization is developed through two test hypotheses. Hypothesis 1 is tested for
awareness about the importance of harmonization of senior accountants and junior
accountants. This hypothesis is tested by three questions. Based on results, most
senior accountants are more likely to aware about the importance of accounting
harmonization than junior accountants. More specific, they often hear the term of
accounting harmonization and think that translating financial statements into English
is necessary than junior accountants. This is because senior accountants have more
working experience than junior accountants. In addition, they employ more
opportunities to approach international accounting, and they realize that financial
statements in English can attract more foreign investors than others, and increase
companys competitive abilities in global environment. However, most of junior
accountants think that training program for accountant to improve their knowledge
relating to international accounting is useful. This is because they just start their
career in accounting area in few years, thus they want to improve their knowledge
toward international accounting.
Hypothesis 2 is tested for different perceptions of accountants toward the benefit of

accounting harmonization. This hypothesis is tested through four relevant factors in
question No.8. Both of senior and junior accountants have similar perceptions toward
benefit of accounting harmonization referred as accounting harmonization can take
easy ability to adapt than accounting standardization, and accounting harmonization
can encourage more global economic activities. This is because each country is
distinguished by its culture and regulation. Two factors will cause the significant
impacts on applied accounting system in each country. Accounting harmonization
can eliminate this problem because it allows each country to make appropriate
amendments. Therefore, most of countries prefer accounting harmonization than
accounting standardization. On the other hand, accountants do not have similar
perceptions toward benefit of accounting harmonization referred as accounting
harmonization is the essential tool to develop in global economy, and accounting
harmonization can reduce the gap amongst different accounting systems in each
country. They might think that benefit of accounting harmonization at the different
levels. For example, accounting harmonization can reduce the gap between different
accounting systems; nevertheless the extent of gap is different from each country.
Therefore, accountants perceptions relating this element are logically different.
Besides that, most of people think of the importance of accounting harmonization.
However, not of all agree that it is the essential tool to develop in global economy.
The reason might be remaining elements also being essential tool to develop in
global economy.
5.3 ACCOUNTING TREATMENTS IN SOME COMPANIES IN VIETNAM

Practice of accounting treatments in some companies in Vietnam responding to
accounting harmonization is tested through 2 hypotheses. One is for accounting
environment, and the other one is for accounting treatments. Under four relevant
factors of accounting environment, we can conclude that there is no relationship
between types of firm and their accounting environment. Whatever those companies
come from different types and different sizes, they employ a person can work with
international accounting standards; they also have the cash flow statement per
annual. In addition, those companies have financial statements translated into

English, and apply VAS in preparation financial statements. Most of different
companies realize the in-depth impacts of global economy, and think that accounting
harmonization is one of the most powerful tools to eliminate obstacles. Therefore,
most of them have the employees can work with international accounting standards.
This is because the companies can expand their operation oversea. For the similar
purpose mentioned above, most of managers of companies tested have the financial
statements in English. Obviously, foreign investors only invest into companies
whether they can understand their financial situations. Thats why the company can
take advantage if they using both of financial statements in Vietnamese and in
English. Besides that, English is the official language in over the world. Thus,
companies have financial statements in English are favorable by investors than
others. Another relevant element is cash flow. This term is the new concept of
Vietnam. Through cash flow statements, financial users can know the liquidity of
each company. This will support more in decision making by investors. Hence, most
of companies prepare cash flow statements per annual. The researcher uses VAS for
testing hypothesis because VAS reflects IAS/IFRS. The purpose of test hypothesis is
to examine how long companies applied VAS in their accounting system, and to
examine whether the different types of companies causing any effects on this
element. The conclusion is drawn that there is no relationship between types of firms
and their application of VAS. This result might be important because this will
support for the future plan if Vietnam want to define strategies to approach
international accounting standards near by near.
Hypothesis 4 is tested for accounting treatments used by companies in Vietnam.
Companies have the similar accounting treatments responding to accounting
harmonization referred to preparation financial statements, and translating financial

statements into English. As we known, financial statements are considers as
framework of each companies. Investors base on these documents to understand the
companys financial situation. In addition, most of managers recognize that attracting
foreign investors is very necessary in global economy. Therefore, most of them focus
on financial statements and translating these documents into English. On the other
hand, companies do not have similar accounting treatments responding to accounting
harmonization referred to application of VAS in accounting system, and recruitment
employees can prepare and understand the financial statements in English. The
different treatments might come from different types of company. For example, the
large companies (multinational companies) prefer to recruit a person can work with
international accounting well, and good at English because its extent operation.
Application VAS is very important; however the extent of perception is different
from each company to company.
5.4 RECOMMENDATION
By comparisons between some typical VAS and IAS, we can conclude that Vietnam
has a good infrastructure for accounting harmonization process. This is considered as
the initial base for researcher to conduct this study. More detailed, the researcher
desires to evaluate actual results than looking at the paper. Evaluations for supporting
this issue are discussed through two elements referred as awareness of Vietnamese
accountants, and different application of accounting policy in some firms in Vietnam.
The researcher hopes that this study will provide some useful guiltiness to reduce the
gap between Vietnamese accounting and international accounting. Based on the
results and discussions, the researcher tries to make some recommendations. Most
senior accountants are more likely to aware about the importance of accounting
harmonization than junior accountants. Therefore, companies should organize some
training programs to improve junior accountants knowledge. Companies also can
give their employees opportunities to continue study oversea with the commitment
working for companies after finishing their courses. Vietnamese accountants are
different from their perceptions toward benefit of accounting harmonization;
however they recognize that companies can take strong points when they approach
accounting harmonization. In addition, there is no relationship between types of
firms and their accounting environments. However, they are not similar in
accounting treatments responding to accounting harmonization. The recommendation
is drawn here as each company should base on its perception toward its mission and
operation should create the most appropriate strategy for its applied financial system.
5.5 SCOPE FOR FUTURE RESEARCH

Based on results collected from this study, some scope for future research will be
mentioned below:
To explore more factors relating to accounting harmonization such as: public

interest of accounting, ethics in accounting, effect of gender in accounting,
and effect of diversity on accounting.
To analyze more regulation and culture in Vietnam to develop accounting

harmonization process more efficiently.
To provide guidelines for accounting policy and accounting application in

each firm to response accounting harmonization effectively.
To discuss about more MOFs role in its efforts of developing harmonization

process in Vietnam.
To discuss the advantages and disadvantages of accounting harmonization in

Vietnam.
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http://en.wikipedia.org/wiki/International_Standards_of_Accounting_and_Reporting
Introduction to FEE
Available at:
http://www.fee.be/aboutfee/default.asp?library_ref=1&category_ref=1&content_ref=
82
Ira Yuta Chairas & Wirawan E.D. Radianto, 2001. Accounting Harmonization in
ASEAN -The Process, Benefits and Obstacles
Available at:
http://gupea.ub.gu.se/dspace/bitstream/2077/2499/1/Chairas_2001_5_inlaga.pdf
IAS 07- Cash Flow Statement

Available at: http://www.accountancy.com.pk/reference_ias.asp?id=16
International Accounting Standard No.2

Available at:
http://www.ilkerbulat.com/Icerik/File/IlkerStudy-IAS2-INVENTORIES.pdf
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Available at: http://www.economicswebinstitute.org/essays/investviet.pdf
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Nobes, Christopher and Parker, Robert.(2002) Comparative International
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Pearson Education Limited
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Available at: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=958478
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edition, London: SAGE Publications Ltd
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of the Treaty on consolidated accounts. OJ L193/1 of 18 July 1983.
Summaries of International Financial Reporting Standards

Available at: http://www.iasplus.com/standard/standard.htm
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Available at: http://www.iasplus.com/standard/ias07.htm
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http://www.iasplus.com/standard/ias27.htm
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Appendix I
The survey topic is relating to Impact of globalization on international accounting
harmonization: a case of Vietnam explain the request of accounting harmonization
in global economy. The objective of this questionnaire is to explore the awareness of
Vietnamese accountants about the importance of accounting harmonization, and the
applied accounting system in some companies in Vietnam responding to accounting
harmonization.
This survey is developed and distributed for this studys purpose only. Any answers
or results from this survey will be strictly kept under confidence and will not be used
for any other purpose. Thanks for your cooperation.
Information of the Respondent

The job Level: senior accountant
Type of company: Manufacturing
junior accountant
Banking
Others
1. Have you ever heard the term of accounting harmonization? (H1)

Always
Often
Sometimes
2. What do you think of your company have a regular training program for
accountant to improve their knowledge relating to international accounting?
(H1)
Very useful
Useful
Not useful
3. Does your company have a person can work with international accounting
standards? (H2)
Yes
No
4. Does your company prepare cash flow statement per annual? (H2)
Yes
No
5. What do you think of translating financial statements into English? (H1)

Very necessary
Not necessary
Necessary
6. Does your company translate financial statements into English? (H2)

Yes
No
7. How long has company applied VAS in preparation financial statements?

(H2)
under 5 years
over 5 years
depend on which VAS applied
8. To what extent, do you agree with the following statements? (H3)
Strongly
disagree
Accounting
harmonization is the
essential tool to develop
in global economy
Accounting
harmonization can reduce
the gap amongst different
accounting systems in
each country
Accounting
harmonization can take
easy ability to adapt than
accounting
standardization
Accounting
harmonization can
encourage more global
economic activities
Disagree
Neutral
Agree
Strongly
agree
9. What is your companys accounting treatment responding accounting

harmonization? (H4)
Very
Important Fairly
Not very Not
important
important important important
Preparing
financial
statements
Application of
VAS in
accounting
system
Recruitment
employees can
prepare and
understand the
financial
statements in
English
Translating
financial
statements into
English
THANK YOU
Appendix II
MEMBERS OF THE STEERING COMMITTEE ON DEVELOPMENT OF

THE VIETNAMESE STANDARDS ON ACCOUNTING
(Per the Minister of Finance Decision No.19/1999/QD-BTC of February 12, 1999)
The Vietnamese Accounting Standards Steering Committee (VASC) is chaired

by Mr. Tran Van Ta Vice Minister of Finance and membered by the following:
1. Mr. Bui Van Mai
- Director of MOF Department of Accounting

Policies Vice Chairman
2. Mr. Pham Dinh Soan
- Deputy Director of General Department of State

Capital and
Assets Management (Currently,
Director of MOF Department of Enterprise Finance)
Vice Chairman
3. Mr. Nguyen Van Dau
- Deputy Director of General Department of Taxation

Vice Chairman (retired)
4. Mr. Ha Duc Tru
- Deputy Director of State Treasury Vice Chairman
5. Mr. Dang Van Thanh
- Director of MOF Department of Finance Policy

(Currently, Director of State Treasury) Vice
Chairman
6. Mr. Phan Dinh Tran
- Director of General Department of Statistics

Department of Regime Methodologies Member
7. Mr. Dao Y
- Deputy Director of SBV Department of Finance

and Accounting Member
8. Mr. Hoang Trung Truc
- Deputy Director of SSC Department of Finance and

Accounting Member
9. Mrs. Phung Thi Doan
- Deputy Director of MOF

Accounting Policies Member
10. Mr. Vuong Dinh Hue
- Dean of Accountancy Department of Hanoi

University of Finance and Accountancy (Currently,
Deputy General Auditor of State Audit
Organization) Member
Department
of
11. Mr. Vu Huy Cam
- Member of VAA Standing Committee Member
12. Mr. Nguyen Quang Quynh - Dean of Accountancy Department of National

Economics University Member
13. Mr. Pham Xuan Luc
- Devision Manager of MOF Department of

Accounting Policy VASC Secretary
MEMBERS OF VIETNAMESE ACCOUNTING STANDARDS SETTING

GROUP (VASG)
(Per the Minister of Finance Decision No.44/1999/QD-BTC of April 27, 1999)
The Vietnamese Accounting Standards Setting Group (VASG) is headed by

Mr. Bui Van Mai Director of MOF Department of Accounting Policies and
membered by the following:
1. Mr. Dang Quoc Tuyen
- Division Manager of General Department of Taxation
2. Mr. Lai Van Xuan
- Devision II of General Department of State Capital

and Assets Management (Currently, MOF
Department of Enterprise Finance)
3. Mr. Pham Ngoc Dinh
- Accounting Department Chief of State Treasury
4. Mr. Do Manh Han
- Research Manager of State Audit Center of

Research and Training
5. Mrs. Nguyen Thi Viet Anh
- MOF Department of Finance Policy
6. Ms. Nguyen Thi Quy
- MOF Department of Banking and Credit Finance
7. Mr. Phan Van Hien
- FDI Division Manager of MOF External Finance

Department (Currently, Departments Deputy
Director)
8. Mr. Dang Chi Dung
- VACO International Service Division Manager

(Currently, Deputy Director of VACO)
9. Mrs. Vu Thi Tho
- Deputy Director of AFC Saigon (Currently,

Company Director)
10. Mrs. Tran Ho Lan
- Division Manager of AASC
11. Mr. Dinh Van Hiep
- Audit senior Enterprise Audit Division of IASC
12. Mr. Nguyen Minh Tri
- Audit Division Manager of A & C (Currently,

Deputy Director)
13. Mr. Nguyen Chi Trung
- Arthur Andersen Vietnam
14. Mr. Mac Quang Huy
- Audit senior of KPMG
15. Mrs. Tran Phuong Loan
- Audit senior of PwC Vietnam
16. Mr. Hoang Duc Hung
- Audit senior of Ernst & Young Vietnam
17. Mr. Hoang Van Ninh
- Vice chairman of EVN Finance and Accounting

Division
18. Mr. Nguyen Phu Chuong
- Chairman of Oil and Gas Corporation Finance and

Accouting Division (Currently, Corporation
inspectoriat expert)
19. Mr. Mai Huu Tho
- Chairman of Vietnam Airlines Finance and

Accounting Division
20. Mr. Le Van Ton
- Chief Accountant of Song Da Construction

Coporation
21. Mr. Vuong Dinh Hue

Deputy General Auditor of State Audit
Organization)
22. Mr. Nguyen Dinh Do
- Chief Accounting Lecture Hanoi University of

Finance and Accountancy (Currently, Dean of
Accountancy Department of Academy of Finance)
23. Mr. Doan Xuan Tien

Dean of Training Department of Academy of
Finance)
24. Mr. Dang Thai Hung
- Deputy Director of MOF Accounting Policy

Department
25. Mr. Pham Xuan Luc
- Devision Manager of MOF Accounting Policy

Department
26. Mr. Ngo Duc Chin
- Audit Devision Manager (Currently, General

Devision Manager) of MOF Accounting Policy
Department
27. Mr. Dao Thai Hoa
- State Accounting Policy Division Manager of MOF

Accounting Policy Department
28. Mrs. Le Thi Hoa
- FDI Accouting Policy Division Manager of MOF

29. Mrs. Ha Thi Tuong Vy
- State Accouting Policy Division Manager of MOF

Accounting Policy Department (Currently, Banking
and Credit Accouting Policy Devision Manager)
30. Mrs. Ha Thi Ngoc Ha
- Audit Policy Division Manager

of
MOF
31. Mrs. Nguyen Phuong Lien - MOF Accounting Policy Department

32. Mr. Trinh Duc Vinh
- MOF Accounting Policy Department
33. Mr. Nghiem Manh Hung
34. Mrs. Pham Minh Hang
35. Mr. Tran Dinh Cuong
- Manager of Ernst & Young Vietnam
36. Mrs. Vu Thi Hong Loan
- Vice chairman of General Policy Division of MOF

Department of Enterprise Finance
37. Mrs. Phan Hong Phuc
- Enterprise Policy Division Manager of MOF

Department of Finance Policy
38. Mr. Nguyen Viet Loi
- Dean of Accountancy Department of Academy of
Finance
39. Mr. Ngo Van Thinh
40. Ms. Le Tuyet Nhung
41. Mr. Vu Duc Chinh
42. Mrs. Nguyen Thanh Nga - MOF Accounting Policy Department

43. Mrs. Le Bich Lan
- Division Manager of MOF Accounting Policy

Department
44. Mrs. Tran Thi Tuyet Lan
MINISTRY OF FINANCE SOCIALIST REPUBLIC OF VIETNAM

---*---
Independence Freedom Happiness
No. 38/QD-BTC
-----------------------------------------------Hanoi, March 14, 2000
DECISION OF THE MINISTER OF FINANCE

On the issuance and publication of Vietnamese
Accounting Standards and Auditing Standards
THE MINISTER OF FINANCE
- Pursuant to the Ordinance on Accounting and Statistics dated May 10, 1988;
- Pursuant to Decree No 178/CP dated October 28, 1994 of the Government

on the assignment, authority and organization of the Ministry of Finance;
- In response to the policy of economic reforms towards a market based

mechanism and the integration process;
- Upon the proposal of the Director of Accounting Policy Department,

Director of External Department and Chief of the Office of the Ministry of Finance,
DECIDES:
Article 1: To issue and promulgate Accounting Standards and Auditing

Standards of Vietnam applicable to business and manufacturing enterprises and audit
firms in Vietnam. These Accounting and Auditing Standards shall be developed on
the basis of the following:
- International Accounting Standards, International Standards on Auditing
codified by the International Federation of Accountants (IFAC);
- In harmony with the development of Vietnams market based economy and
in response to the legal requirements and Vietnamese accountancy experience,
proficiency and practice;
- The Accounting and Auditing Standards of Vietnam shall be simple. Clear
and in line with the regulations on the making of legal documents in Vietnam.
Article 2: The Steering Committee on Development of Vietnamese Auditing

Standards on set up under Decision 1503/1998/QD-BTC dated October 30, 1998 and
Steering Committee for Development of Vietnamese Accounting Standards under
Decision 19/1999/QD-BTC dated February 12, 1999 of the Minister of Finance are
required to speed up implementation of their scheduled tasks to ensure all intended
Vietnamese accounting standards and auditing standards to have been issued and
published during 2003.
Article 3: A standing unit for the Steering Committee and preparation

groups/teams, the Accounting Policy Department shall be responsible for the
organization of developing, gathering comments on, and finalizing the standards for
submission to the Ministry for issuance. These units, affiliated to or controlled by the
Ministry of Finance, namely, the General Department of Taxation, State Budget
Department, Financial Policy Department, Enterprise Finance Department,
Investment Department, State Treasury and Hanoi University of Finance and
Accountancy and others concerned are to assign expertise personnel to relevant
monitoring boards and preparation groups/teams; coordinate with, provide data,
information to, and facilitate the fulfillment of assignments assumed by, the Steering
Committee and preparation groups/teams.
Article 4: This Decision shall come into effects from the date of signing. The
Chairman of The Steering Committee for Development of Vietnamese Accounting
Standards, Chairman of the Steering Committee for Development of Vietnamese
Standards on Auditing, Director of Accounting Policy Department and Heads of
relevant units affiliated to, or controlled by, the Ministry of Finance shall be
responsible for implementing this Decision.
FOR THE MINISTER OF FINANCE

VICE MINISTER
Tran Van Ta (Signed and sealed)

---*---
No. 489/QD-BTC
-----------------------------------------------Hanoi, May 10, 2000
DECISION
OF THE CHAIRMAN OF STEERING COMMITTEE
ON DEVELOPMENT OF VIETNAMESE ACCOUNTING STANDARDS
AND AUDITING STANDARDS
On the Issuance of Procedures of Developing, Issuing,
and Publishing Vietnamese Accounting Standards and Auditing Standards
THE CHAIRMAN OF THE COMMITTEE
- Pursuant to Accounting and Statistics Ordinance issued in conjunction with

Order No.06/LCT-HDNN dated May 20, 1998 of the Chairman of State Council and
Decree 07/CP of January 29, 1994 of the Government issuing Regulations on
Independent Auditing in the National Economy;
- Pursuant to Decision 1563/1998/QD-BTC dated October 20, 1998 of the

Minister of Finance on the establishment of the Steering Committee on Development
of Vietnamese Standards on Auditing; and
- Pursuant to Decision 19/1999/QD-BTC dated February 12, 1999 of the

Minister of Finance on the establishment of the Steering Committee on Development
of Vietnamese Accounting Standards;
For the consistency and expediency in studying developing, issuing, and

publishing the Vietnamese accounting standards and auditing standards;
DECIDES:
Article 1: To issue in conjunction with this Decision Procedures of

Developing, Issuing, and Publishing Vietnamese Accounting Standards and Auditing
Standards.
Article 2: This decision shall take effect from the signing date.
Article 3: The members of the Steering Committee on Development of

Vietnamese Accounting Standards and Auditing Standards and those of respective
preparation groups/teams shall be responsible for the implementation of this Decision.

VICE MINISTER
Chairman of the Steering Committee on Development
of Vietnamese Accounting Standards and Steering
Committee of Vietnamese Standards on Auditing

---*---

------------------------------------------------
PROCEDURES OF DEVELOPING, ISSUING, AND PUBLISHING

VIETNAMESE ACCOUNTING STANDARDS AND AUDITING
STANDARDS
(Issued in conjunction with Decision 489/QD-BTC dated May 10, 2000

of the Chairman of the Steering Committee on Development
of Vietnamese Accounting and Auditing Standards)
1. Orders of the Work
The developing and issuance of accounting standards and auditing standards

shall follow the Law on issuance of legal documents and these procedures, covering
the following steps:
1.1. Building up general principles on scope and subject of application, basis

and principles of compiling, listing, and grouping the standards;
1.2. Compiling standard by standard, holding group/team discussions and

seeking comments from experts, units of the Ministry of Finance and relevant
ministries and agencies, members of the Steering Committee, and the National
Council on Accountancy;
1.3. Upon receipt of comments and recommendations from the National

Council on Accountancy, completing the standards for submission to the Minister of
Finance for issuance and publication.
2. Document Layout
Each of the accounting standards and auditing standards shall be titled,

numbered and structured in parts, sections and paragraphs, with subtitles assigned to
parts and sections, and numbers to paragraphs. Each standard consists of two parts:
General and Content of the Standards.
The General covers the purpose, fundamental contents, scope of

application, and definition of terms used in the standard.
Definition in each standard deals only with directly related terms that are
repeatedly used therein and should result in consistent interpretations. No definition
or explanation is provided concerning terms defined in other standards.
Items of the fundamental content shall be separately paragraphed and

consecutively numbered.
3. Established Numeration and Symbolism of the Standards
- Standards shall be arranged in the manner in which the standards on general

considerations are followed by those on specific ones and each standard is presented
in the order of accounting and auditing procedures;
- The accounting standards shall be numbered with two (02) digits, and
auditing standards three (03) digits;
- Symbols (abbreviation):
+ Vietnamese Accounting Standards: CKV in Vietnamese and VAS in

English
+ Vietnamese Standards on Auditing: CKIV in Vietnamese and VSA in

English
4. Areas and Procedures for View Exchange and Consultation
- Holding direct discussions within each preparation group/team to initially

prepared and gradually complete the exposure draft;
- Organizing open discussions for comment thereon from accountancy and

finance experts from relevant State management agencies, universities and colleges,
enterprises, audit firms, and accountancy bodies;
- Gathering and summarizing comments and recommendations from such

discussions for supplementation, revision and completion of each standard as initially
prepared;
- Distributing the exposure draft to departments and general departments

affiliated to and controlled by the Ministry of Finance for comments;
- Forwarding the document to relevant ministries and agencies, the Vietnam

Chamber of Commerce and Industry, and the Vietnam Accounting Association for
official comment;
- Submitting the document to the Steering Committee for approval;
- Submitting the document to the National Council on Accountancy for

advice; and
- Finalizing the standard for submission to the Minister of Finance for

issuance and publication.
5. Revision and supplementation
During the application of these accounting standards and auditing standards,

should revision of, or supplementation to, one or a number of the standards be
needed, such revision and supplementation shall follow this set of procedures.
6. Responsibilities of the Steering Committee Members
- Participate in initially and figuring the study of general principles with

respect to the scope and subject of application; basis and rule for preparing
accounting and auditing standards and for making a list thereof;
- Directly monitor and participate in discussions for particular standards to be

held with each group/team;
- Contribute comments for revision to completion of the exposure draft;
- Disseminate and realize the application of accounting standards and

auditing standards which have come out.
Each of the Steering Committee members shall carry out assignments as

delegated by the Committee Chairman.
7. Responsibilities of Standard Preparation Groups/teams
- Study for and prepare Vietnamese accounting and auditing standards as

initially planned by the Steering Committee;
- Hold discussions within the group/team of the draft standards;
- Refer to the Steering Committee problems, queries met with during the
development process for direction;
- Seek to obtain expertise comments and recommendations on each exposure

draft; finalize the draft standard for submission by the Steering Committee to the
Ministry of Finance for issuance.
Groups/teams and individuals shall carry out assignments as delegated by the

Committee Chairman.
This set of procedures shall be consistently followed during the study,

preparation, issuance and publication of the Vietnamese accounting standards and
auditing standards.

VICE MINISTER
Chairman of the Steering Committee on Development
of Vietnamese Accounting Standards and Steering

Committee of Vietnamese Standards on Auditing
MINISTRY OF FINANCE
SOSIALIST REPUBLIC OF VIETNAM
----*----
Independence Freedom - Happiness
No. 149/2001/QD-BTC
------------------------------------------Hanoi, December 31, 2001
DECISION OF THE MINISTRY OF FINANCE

On the Issuance and Promulgation of
Four (04) Vietnamese Accounting Standards (Series 1)
MINISTER OF FINANCE
- Pursuant to the Accounting and Statistics Ordinance promulgated at Order

No. 06-LCT/HDNN dated May 20, 1988 of the State Council and the Regulation on
state Accounting Organization issued in conjunction with Decree No. 25-HDBT
dated March 18, 1989 of the Council of Ministers (currently the Government);
- Pursuant to Governmental Decree No. 15/CP of March 2, 1993 providing for

the assignment, authority and responsibility for State management of the ministries
and ministry-level agencies;
- Pursuant to Governmental Decree No. 178/CP dated October 28, 1994

regulating the functions, assignment and organizational apparatus of the Ministry of
Finance;
In response to the requirement of economic and financial management reform,

improvement of the quality of account-ting information provided in the national
economy and examination and verification of accounting practice.
Upon the proposal of the Director of the Accounting Policy Department and
Chief of the Office of the Ministry of Finance.
DECIDES:
Article 1: To issue four (04) Vietnamese accounting standards (series 1) with

the numbers and titles specified:
1.
2.
3.
4.
Standard No. 02 Inventories;

Standard No. 03 Tangible Fixed Assets;
Standard No. 04 Intangible Fixed Assets;
Standard No. 14 Revenues and Other Incomes.
Article 2: Four (04) Vietnamese accounting standards issued following this

decision shall be applicable nation-wide to enterprises of all industries and economic
sectors.
Article 3: This Decision shall come into force from January 2002. Individual
accounting systems shall be amended and supplemented in accordance with the four
(04) Vietnamese accounting standards issued hereby.
Article 4: The Director of the Accounting Policy Department, Chief of the

Ministrys Office, and heads of relevant affiliate and subsidiary units of the Ministry
of Finance shall be responsible for guiding and supervising the implementation of
this Decision.
MISISTER OF FINANCE
Nguyen Sinh Hung

(Signed and sealed)
MINISTRY OF FINANCE
COSIALIST REPUBLIC OF VIETNAM
----*----
No. 165/2002/QD-BTC
------------------------------------------Hanoi, December 31, 2002

On issuance and publication of
Four (06) Vietnamese Accounting Standards (batch 2)
MINISTER OF FINANCE
- Pursuant to the Accounting and Statistics Ordinance promulgated at Order

No.06-LCT/HDNN dated May 20, 1998 of the State Council and the Regulation on
State Accounting Organization issued in conjunction with Decree No. 25-HDBT
dated March 18, 1989 of the Council of Ministers (currently the Government);
- Pursuant to Governmental Decree No. 86/2002/ND-CP of November 5, 1993

providing for the assignment, authority and responsibility for State management of
the ministries and ministry-level agencies;
- Pursuant to Governmental Decree No. 178/CP dated October 28, 1994

Finance;

improvement of the quality of accounting information provided in the national
DECIDES
Article 1. To issue six (06) Vietnamese accounting standards (Batch 2) with

1.
2.
3.
4.
5.
6.
Standard No. 01 Framework

Standard No. 06 Leases
Standard No. 10 The Effects of Changes in Foreign Exchange Rates
Standard No. 15 Construction Contracts
Standard No. 16 Borrowing Costs
Standard No. 24 Cash Flow Statements
Article 2. Six (06) Vietnamese accounting standards issued following this

sectors.
Article 3. This Decision shall come into force as of January 01, 2003.
Individual accounting regulations and systems shall be amended and supplemented
in accordance with the six (06) Vietnamese accounting standards issued hereby.
Article 4. The Director of the Accounting Policy Department, Chief of the

this Decision.
FOR THE MINISTER OF FINANCE VICE MINISTER

Tran Van Ta (signed)
MINISTRY OF FINANCE
----*----
No. 234/2003/QD-BTC
------------------------------------------Hanoi, December 30, 2003

Four (06) Vietnamese Accounting Standards (Batch 3)
MINISTER OF FINANCE
- Pursuant to the Accounting Law No.03/2003/QH11 dated June 17, 2003;

the ministries and ministry-level agencies;
- Pursuant to Governmental Decree No 178/CP dated October 28, 1994

Finance;

economy and exami-nation and verification of accounting practice.
Upon the proposal of the Director of the Accounting and Auditing Policy
Department and Chief of the Office of the Ministry of Finance.
DECIDES:
Article 1: To issue six (06) Vietnamese accounting standards (Batch 3) with

Standard No. 05 Investment Property;
Standard No. 07 Accounting for investments in Associate;
Standard No. 08 Financial Reporting of Interest in Joint Ventures;
Standard No. 21 Presentation of Financial Statement;
Standard No. 25 Consolidated Financial Statements and Accounting fos
Investments in Subsidiaries;
6. Standard No. 26 Related Party Disclosures.
1.
2.
3.
4.
5.
Article 2: Six (06) Vietnamese accounting standards issued following this

sectors.
Article 3: This Decision shall come into force after 15 days of the date
publication is made in the official gazette. Individual accounting systems shall be
amended and supplemented in accordance with the six (06) Vietnamese accounting
standards issued hereby.
Article 4: The Director of the Accounting and Auditing Policy Department,
Chief of the Ministrys Office, and heads of relevant affiliate and subsidiary units of
the Ministry of Finance shall be responsible for guiding and supervising the
implementation of this Decision.
MINISTRY OF FINANCE
----*----
No. 12/2005/QD-BTC
------------------------------------------Hanoi, February 15, 2005

Six (06) Vietnamese Accounting Standards (Series 4)
MINISTER OF FINANCE

the ministries and ministry level agencies;
- Pursuant to Governmental Decree No. 77/2003/ND-CP dated July 01, 2003

Finance;

economy and exami-nation and verification of accounting practice.
Chief of the Director of the Accounting Policy Department and Chief of the Office of
the Ministry of Finance.
DECIDES:
Article 1: To issue six (06) Vietnamese accounting standards (series 4) with

1. Standard No. 17 Income Taxes;
2. Standard No. 22 Disclosures in the Financial Statements of Banks and
similar Financial Institutions;
3. Standard No. 23 Events After the Balance Sheet date;
4. Standard No. 27 Interim Financial Reporting;
5. Standard No. 28 Segment Reporting
6. Standard No. 29 Changes in Accounting Policies, Accounting Estimates
and Errors.
Article 2: Six (06) Vietnamese accounting standards issued following this
sectors.
publication is made in the official gazette. Individual accounting systems shall be
amended and supplemented in accordance with the six (06) Vietnamese accounting

this Decision.
MINISTRY OF FINANCE
----*----
No. 100/2005/QD-BTC
------------------------------------------Hanoi, December 28, 2005
DECISION

four (04) Vietnamese Accounting Standards (Series 5)
MINISTER OF FINANCE

the ministries and ministry level agencies;
- Pursuant to Governmental Decree No. 77/2003/ND-CP dated July 01, 2003

Finance;

DECIDES:
Article 1: To issue four (04) Vietnamese accounting standards (series 5) with

1.
2.
3.
4.
Standard No. 11 Business combination;

Standard No. 18 Provisions, contingent assets and liabilities;
Standard No. 19 Insurance contract;
Standard No. 30 Earning per share;
Article 2: Four (04) Vietnamese accounting standards issued following this

sectors.
publication is made in the official gazetted. Individual accounting systems shall be
amended and supplemented in accordance with the four (04) Vietnamese accounting

this Decision.
FOR THE MINISTER

VICE MINISTER
Tran Van Ta (signed and sealed)
Appendix III
Degrees
of
freedom
02.995
02.990
02.975
02.950
02.050
02.025
02.010
02.005
0.0000393 0.0001571 0.0009821 0.0039321 3.84146 5.02389 6.63490 7.87944
0.0100251 0.0201007 0.102587
0.102587
5.99147 7.37776 9.21034 10.5966
0.0717212 0.114832
0.215795
0351846
7.81473 9.34840 11.3449 12.8381
0.206990
0.297110
0.484419
0.710721
9.48773 11.1433 13.2767 14.8602
0.411740
0.554300
0.831211
1.145476
11.1433 12.8325 15.0863 16.7496
0.675727
0.872085
1.237347
1.63539
12.8325 14.4494 16.8119 18.5476
0.989265
1.239043
1.68987
2.16735
14.4494 16.0128 18.4753 20.2777
1.344419
1.646482
2.17973
2.73264
16.0128 17.5346 20.0902 21.9550
1.734926
2.087912
2.70039
3.32511
17.5346 19.0228 21.6660 23.5893
10
2.15585
2.55821
3.24697
3.94030
19.0228 20.4831 23.2093 25.1882
11
2.60321
3.05347
3.81575
4.57481
20.4831 21.9200 24.7250 26.7569
12
3.07382
3.57056
4.40379
5.22603
21.0261 23.3367 26.2170 28.2995
Source: C.M. Thompson, Tables of percentage of the 2 -distribution, Biometrika,

vol. 32. 1941. pp. 188-89. Reproduced by permission of Biometrika trustees.
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IMPACT OF GLOBALIZATION ON INTERNATIONAL ACCOUTING

HARMONIZATION: A CASE OF VIETNAM

Graduation Project Submitted to the Department of Business Studies

First and foremost, my sincere gratitude is dedicated to my supervisor Dr. Le Van

Hanoi, June 2010

IMPACT OF GLOBALIZATION ON INTERNATIONAL ACCOUTING

Supervisor: Dr. Le Van Lien

types and sizes of companies) in accordance with accounting harmonization. This is

1.1 Background of the study

1.2 Research objectives

1.3 Problem statement

1.4 Limitation of the study

1.5 Organization of the research

2.1 The importance of accounting harmonization

2.1.1 The need for accounting harmonization

2.1.2 Distinguish between accounting harmonization and accounting

2.2 The actor of issuance IAS

2.3 Advantages of accounting harmonization

2.4 Disadvantages of accounting harmonization

2.5 Different levels of accounting harmonization

2.5.1 International level of accounting harmonization

2.5.2 Regional level of accounting harmonization

2.5.3 National level of accounting harmonization

2.5.3.1 Some countries in ASEAN

3.1 Research objectives

3.2 Research Methodology

3.2.1 Primary data

3.2.2 Secondary data

3.3 Research Instrument

3.3.1 Awareness of Vietnamese accountants of accounting harmonization

3.3.2 How companies in Vietnam response to accounting harmonization

3.4 Research Hypotheses

3.5 Data Collection

3.7 Response Rate

3.8 Interpretation of Data

3.9 Limitation of Research

4.1 Vietnamese accounting standards (VAS) responding

4.1.2 The actors

4.1.3 Evaluation the role of MOF in process of establishment VAS

4.1.4 Vietnamese accounting standards

4.2 Comparison between some typical VAS and IAS

4.2.1 VAS 02 and IAS 02

4.2.2 VAS 24 and IAS 07

4.2.3 VAS 25 and IAS 27

4.3 Analysis of primary data

4.3.1 Classification of the respondents of different job levels

4.3.2 Classification of the Respondents from Types of Companies

4.3.3 Test hypotheses

4.4.3.1 Awareness of Vietnamese Accountants

4.4.3.2 Practice of accounting treatments in some companies in

5.1 Comparison between IAS and VAS

5.2 Awareness of Vietnamese accountants relating to accounting

5.3 Accounting treatments in some companies in Vietnam

5.5 Scope for future research

Four VAS issued and promulgated in 2001 and relating IAS

Six VAS issued and promulgated in 2002 and relating IAS

Six VAS issued and promulgated in 2003 and relating IAS

Six VAS issued and promulgated in 2004 and relating IAS

Four VAS issued and promulgated in 2005 and relating IAS

Comparison between VAS 02 and IAS 02

Comparison between VAS 24 and IAS 07

Comparison between VAS 25 and IAS 27

Classification of the respondents of Different job level

Classification of the Respondents from Types of Companies