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Swinburne's 2012 IAS/IFRS in Vietnam Survey
Swinburne's 2012 IAS/IFRS in Vietnam Survey
Swinburne's 2012 IAS/IFRS in Vietnam Survey
This survey has been approved by or on behalf of Swinburnes Human Research Ethics Committee. If you have any questions regarding this project, please contact: Ms Duc Hong Thi Phan, Student Researcher, Email: duchongthiphan@swin.edu.au Dr Nicholas Mroczkowski, Coordinating Supervisor, Email: nmroczkowski@swin.edu.au Dr Meropy Barut, Associate Supervisor, Email: mbarut@swin.edu.au
Faculty of Business and Enterprises Cnr William and Wakefield Street Hawthorn Mail H25 PO Box 218 Hawthorn Victoria 3122 Australia Telephone +61 3 9214 8000 Facsimile +61 3 9819 5454 http://www.swin.edu.au Copyright 2012 Duc Hong Thi Phan
Please return the completed questionnaire using the enclosed envelope. No stamp is required
Letter of Introduction
Friday, 06/04/2012 Dear sir/madam, I am currently a PhD student at Swinburne University of Technology, Australia. I am conducting research which examines the extent of the convergence progress of Vietnamese Accounting Standards (VAS) with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) in Vietnam. The findings of the survey will be used for my PhD thesis and for related publications. I would like to invite you to participate in this research project. Participation is completely voluntary. I would be grateful if you could spend 20 to 30 minutes of your time at your convenience to answer the questionnaire. I have sent you two questionnaire booklets in both English and Vietnamese languages. Please choose to answer the questionnaire in the language that you feel most comfortable. Please assist me to achieve the maximum response rate by passing on the other booklet to your colleague or manager. I set my goal of 1,000 returned questionnaires to achieve the statistical results which best represent the perceptions of Vietnamese accounting/auditing professionals about IAS/IFRS. Please return the completed questionnaire in the enclosed reply paid envelope or email to duchongthiphan@swin.edu.au. Alternatively, you may prefer to complete the questionnaire online (both English & Vietnamese) at the link http://opinio.online.swin.edu.au/s?s=12114. By completing the questionnaire you will assist in contributing to knowledge regarding the potential advantages, and disadvantages of IAS/IFRS; the challenges of the IAS/IFRS implementation process; the potential influence factors on the acceptance of IAS/IFRS in Vietnam; and what best approaches for the future evolution of Vietnamese accounting standards are available in light of the current global movement towards IAS/IFRS. I believe that the findings of the project will assist the Vietnamese Accounting Standard Setters in making favourable decisions affecting accounting practice, which will in turn support social and economic development in Vietnam. Your response to this questionnaire will be kept absolutely confidential. Subsequent reports based on this research will only present aggregate data in statistical form without identifying individual responses. All responses will be coded and the originals destroyed. No identifiable information will be used and all data will be grouped for analysis.
Faculty of Business and Enterprises Cnr William and Wakefield Street Hawthorn Mail H25 PO Box 218 Hawthorn Victoria 3122 Australia Telephone +61 3 9214 8000 Facsimile +61 3 9819 5454 http://www.swin.edu.au
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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This project has been approved by Swinburnes Human Research Ethics Committee (SUHREC) in line with the National Statement on Ethical Conduct in Research Involving Humans. If you have any complaints or concerns about the conduct of this project, please call (+61) 3 9214 5223 or write to. The Chair of Human Research Ethics Committee Swinburne University of Technology PO Box 218, Hawthorn Vic 3122, Australia Email: resethics@swin.edu.au Thank you very much for your time and valued contribution. Should you require any further information about this invitation please do not hesitate to contact me at duchongthiphan@swin.edu.au. Yours sincerely
Faculty of Business and Enterprises Cnr William and Wakefield Street Hawthorn Mail H25 PO Box 218 Hawthorn Victoria 3122 Australia Telephone +61 3 9214 8000 Facsimile +61 3 9819 5454 http://www.swin.edu.au Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan Page 2
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Section 1: Advantages of IAS/IFRS in Vietnam (Instruction: The following is a list of
potential advantages of the application of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) (hereinafter called IAS/IFRS) which have been claimed by the researchers. What are your opinions about each item? Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)
No 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15
Advantages of IAS/IFRS in Vietnam 1 2 3 4 5 IAS/IFRS-based financial statements are reliable. IAS/IFRS-based financial statements are relevant. IAS/IFRS-based financial statements are understandable. IAS/IFRS-based financial statements are comparable. IAS/IFRS lead to a higher quality of financial reporting than VAS. IAS/IFRS provide credibility and thus increases shareholders trust. IAS/IFRS make access to global market easier than VAS. IAS/IFRS make external financing easier than VAS. IAS/IFRS improve relationships with creditors. IAS/IFRS improve investors confidence. IAS/IFRS reduce the cost of capital. Conversion to IAS/IFRS reduces the cost of issuing national standards. Conversion to IAS/IFRS reduces the cost of maintaining two sets of financial reporting. Conversion to IAS/IFRS reduces the cost of analysing data provided in the financial reports Other advantage (please specify):
No 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10
Disadvantages of IAS/IFRS in Vietnam IAS/IFRS are complicated. IAS/IFRS are subjective. IAS/IFRS are time consuming. IAS/IFRS lack the details, therefore creating room for personal interpretation. IAS/IFRS are in a foreign language so they are hard to understand. IAS/IFRS are influenced by political intervention from the developed countries IAS/IFRS are not yet fully accepted globally. IAS/IFRS for Small & Medium Enterprises (SME) are too complicated for the needs of Vietnamese SME. IAS/IFRS increase the risk of corporate fraud. It is impossible to have global accounting standards due to country differences.
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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No Disadvantages of IAS/IFRS in Vietnam 1 2 3 4 5 2.11 Countries like Vietnam do not need IAS/IFRS. 2.12 Countries like Vietnam do not have any voice in the IAS/IFRS setting process. 2.13 National pride is compromised when national standards give way to IFRS. 2.14 Costs of conversion from VAS to IAS/IFRS will outweigh its benefits. 2.15 Other disadvantage (please specify): Section 3: Challenges of IAS/IFRS implementation in Vietnam (Instruction: The
following is a list of potential challenges of IAS/IFRS implementation which have been claimed by the Researchers. What are your opinions about each item? Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)
No 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12
Challenges of IAS/IFRS implementation in Vietnam 1 2 3 4 5 Updating information technology systems Updating accounting processes Updating auditing processes Managing public perception of changes in financial statements Managing transition workload while maintaining day-today activities Educating non-financial staff/management Educating financial staff/management Insufficient guidance on first-time application of IFRS Lack of timely IAS/IFRS translation into the Vietnamese language Limited coverage of IAS/IFRS in the current university curriculum Other challenge (please specify): If given a choice, would your company consider adopting IAS/IFRS? Please explain why:
Readiness of IAS/IFRS conversion in Vietnam First time Adoption of IFRS (IFRS 1) Share-based Payment (IFRS 2) Business Combinations (IFRS 3) Insurance Contracts (IFRS 4) Non-current Assets Held for Sale and Discontinued Operations (IFRS 5)
NA
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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No Readiness of IAS/IFRS conversion in Vietnam 4.06 Exploration for and Evaluation of Mineral Resources (IFRS 6) 4.07 Financial Instruments (IFRS 7, IFRS9, IAS32, IAS39) 4.08 Operating Segments (IFRS 8) 4.09 Consolidated Financial Statements (IFRS 10, IAS27) 4.10 Joint Arrangements (IFRS 11) 4.11 Disclosure of Interests in Other Entities (IFRS 12) 4.12 Fair Value Measurement (IFRS 13) 4.13 Presentation of Financial Statements (IAS 1) 4.14 Inventories (IAS 2) 4.15 Cash Flow Statements (IAS 7) 4.16 Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) 4.17 Events After the Balance Sheet Date (IAS 10) 4.18 Construction Contracts (IAS 11) 4.19 Income Taxes (IAS 12) 4.20 Property, Plant and Equipment (IAS 16) 4.21 Leases (IAS 17) 4.22 Revenue (IAS 18) 4.23 Employee Benefits (IAS 19) 4.24 Accounting for Government Grants, Disclosure of Government Assistance (IAS 20) 4.25 The Effects of Changes in Foreign Exchange Rates (IAS 21) 4.26 Borrowing Costs (IAS 23) 4.27 Related Party Disclosures (IAS 24) 4.28 Accounting and Reporting by Retirement Benefit Plans (IAS 26) 4.29 Investments in Associates (IAS 28) 4.30 Financial Reporting in Hyperinflationary Economies (IAS 29) 4.31 Interests in Joint Ventures (IAS 31) 4.32 Earnings Per Share (IAS 33) 4.33 Interim Financial Reporting (IAS 34) 4.34 Impairment of Assets (IAS 36) 4.35 Provisions, Contingent Liabilities and Contingent Assets (IAS 37) 4.36 Intangible Assets (IAS 38) 4.37 Investment Property (IAS 40) 4.38 Agriculture (IAS 41)
NA
Q4: What timeline would be required for preparation for full conversion to IAS/IFRS?
Timeline 1 year 2 years 3 years 4 years 5 years Over 5 years
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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No 5.01
5.02
5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 5.14 5.15
Choices of IAS/IFRS implementation in Vietnam 1 2 3 4 5 Adoption or Convergence Full adoption approach, i.e. replace entirely VAS by IAS/IFRS and provide supplementary information only for national issues not addressed in IAS/IFRS (big bang approach). Convergence approach, i.e. introduce IAS/IFRS standard by standard and eventually have Vietnamese accounting system comparable to IAS/IFRS (staggered approach). Adaptation approach, i.e. amend and adjust IAS/IFRS to suit the Vietnamese context. No change approach, i.e. continue with the current VAS, no change is required. Other approach (please specify): Voluntary or Mandatory Allow the voluntary use of IAS/IFRS for all reporting entities Allow the voluntary use of IAS/IFRS only for publicly listed entities Allow the voluntary use of IAS/IFRS only for foreign invested entities Allow the voluntary use of IAS/IFRS only for financial institutions Require the mandatory use of IAS/IFRS for all reporting entities Require the mandatory use of IAS/IFRS only for publicly listed entities Require the mandatory use of IAS/IFRS only for foreign invested entities Require the mandatory use of IAS/IFRS only for financial institutions Do not allow IAS/IFRS at all. Other approach (please specify):
Q5: What timeline would be required for preparation for the above choice of IAS/IFRS implementation in Vietnam?
Timeline 1 year 2 years 3 years 4 years 5 years Over 5 years
No
Factors influence on the acceptance of IAS/IFRS in Vietnam External pressures from multinational lending agencies and donors 6.01 World Bank (WB)
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31
Factors influence on the acceptance of IAS/IFRS in 1 2 3 4 5 Vietnam Asian Development Bank (ADB) International Monetary Fund (IMF) International Finance Corporation (IFC) World Trade Organisation (WTO) Japanese Official Development Assistance (ODA) fund Korean Official Development Assistance (ODA) fund External pressures from International Professional Bodies International Federation of Accountants (IFAC) The Association of Chartered Certified Accountants (ACCA) The Society of Certified Practising Accountants of Australia (CPA Australia) Asean Federation of Accountants (AFA) Asian-Oceanian Standard-Setters Group (AOSSG) International Accounting Standards Board (IASB) Internal pressures from associations/organisations in Vietnam Vietnam Association of Certified Public Accountants (VACPA) Vietnam Accounting & Auditing Association (VAA) International accountancy firms (i.e. Big Four audit firms) Academic of large accounting universities Industry Leading Enterprises Multinational Corporations Key trading partner countries Other factors Needs to attract more foreign direct investment Needs to raise finance in international capital market Needs to enhance the development of national stock exchange market Needs to enhance national reputation as being in compliance with international rules Lobby from the leading publicly listed companies Lobby from the leading foreign companies Requirements of financial institutions and major creditors Requirements of state regulatory authorities Following Asian countries which successfully adopted or converged to IAS/IFRS Following the trend of over 120 countries which permit or require IAS/IFRS Other factor (please specify)
Q6. In your opinion, what top three factors have most significant influence? Please provide the factor numbers (e.g. 6.xx) _____________________________________________________________________
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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Section 7: Recommendation to Vietnamese Accounting Standards Committee VASC (It is optional. However, the aggregate findings of the study will be forwarded to the Vietnamese
Accounting Standards Committee. So please do not hesitate, be direct and honest.)
Q7.1 What top three accounting issues/standards should be viewed as priority in the path to converge VAS towards IAS/IFRS?
i. _____________________________________________________________________ ii. _____________________________________________________________________ iii. _____________________________________________________________________
Q7.2 Do you have any other recommendation to VASC? (give details if any) _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ Section 8: Background of the respondent (Thank you. I would now like to finish off with some
questions about your organisation and yourself for statistical purposes.) 8.1 Your Gender 8.2 Your Age 8.3 Your Highest Academic Qualification 8.4 Main language of highest qualification 8.5 Member of professional bodies (select as many as appropriate) 8.6 IFRS training Male Under 21 High school Female 21-30 Vocational 31-40 Diploma 41-50 Bachelor 51-60 Master Over 60 Doctorate
Vietnamese
English
None
VACPA
VAA
ACCA
CPA Australia
Self-study
VACPA
VAA
ACCA
CPA Australia
8.7 Years of working experience 8.8 Years of living overseas 8.9 Self-assessment about IAS/IFRS knowledge (out of 10) 8.10 Level of IAS/ IFRS knowledge required at work (out of 10) 8.11 Frequency of IAS/ IFRS use at work 8.12 What role best describes you when answering this survey? 8.13 Your current position
1-5 years
6-10 years
11-15 years
16-20 years
1 year
2 years
3 years
4 years
Over 4 years
Never
Daily
Other (specify)
Senior
Team leader
Manager
Other (specify) ..
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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8.14 What sector do you work for? 8.15 Type of ownership of your organisation 8.16 Total employment of your organisation 8.17 Location of your organisation 8.18 Number of countries in which your organisation operates? 8.19 What is your organisations country of origin
Manufacturing
Commercial
Service
University
Government
Jointventure 20-50
Stateowned 101-200
Privateowned 201-300
Binh Duong
Dong Nai
Ha Noi
Da Nang
2 countries
3 countries
4 countries
5 countries
Vietnam
Korea
Taiwan
Singapore
Malaysia
China
Australia 8.20 Percentage of last years overseas revenue 8.21 Core standards in your organisations consolidated reports 8.22 Who is your audit firm? None
USA 1- 20%
UK 21-40%
France 41-60%
Germany 61-80%
VAS only
VAS with IAS/IFRS reconciliation Non- Big 4 international Audit firm Positive
8.23 Impact of IAS/IFRS conversion to your organisation 8.24 Estimated cost of IAS/IFRS conversion
Extremely positive
Extremely negative
Dont know
Dont know
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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I agree to participate in the interview process involving empirical research on the convergence process of IAS/IFRS in Vietnam and I am happy to further explain my answers in the survey. I also agree that the interview may be recorded by an electronic device on the condition that no part of the recording is included or made public in any way. I agree that the research data collected for the study may be published or provided to other researchers on the condition that anonymity is preserved and that I or my organisation cannot be identified or otherwise without the prior express written consent of the participant. By signing this document, I express my interest in the interview process.
Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan
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