The possibilities of adopting IAS/IFRS in Vietnam: An analysis

Abstract

It is universally acknowledged that the matter of adoption and its similar process (harmonisation or convergence) has provoked extensively heated debate in the accounting literature, both from advocates and from opponents. Nonetheless, the accounting literature lacks research into the field of Vietnamese accounting, in general, and the nature of Vietnamese accounting systems as well as Vietnamese Accounting Standards (VAS), in particular. This paper in-depth analyses the possibility of adopting IAS/IFRS in Vietnam by critical examining findings of the accounting literature on three aspects: factors influencing the development of accounting practices and accounting standards, factors affecting the adoption of IAS/IFRS by developing countries, and arguments for and against adoption of IAS/IFRS. Based on matching findings in the latent literature, especially those relating to contextual factors that have an impact on adopting IAS/IFRS, with the current situation of Vietnam, this paper proposes that adoption of IAS/IFRS with selection is practically possible in Vietnam.