Studying the impact of applying international accounting standards (IFRS for SMEs) in small and medium enterprises in Ho Chi Minh City

Abstract

Global economic integration is becoming a trend for countries worldwide, thus requiring countries to unify in preparing and presenting financial reports. The emergence of International Financial Reporting Standards (IFRS) as well as International Financial Reporting Standards for Small and Medium-sized Enterprises (IFRS for SMEs) issued by the International Accounting Standards Board (IASB) has provided favorable conditions for businesses to participate in international activities more conveniently. Small and medium-sized enterprises (SMEs) are a significant economic component in every country, accounting for a large proportion of businesses. In Vietnam, with a ratio of 98% of SMEs, they have a significant impact on the development of the entire economy. Vietnam is a developing country that attracts a lot of attention from foreign investors, aiming to create high-quality financial reports that can compete with those of other countries worldwide. Therefore, researching IFRS for SMEs is truly necessary. The author's study was conducted through 185 survey samples, using quantitative methods through SPSS software for data analysis. The techniques used include descriptive statistics, testing the reliability of the Cronbach’s Alpha scale, Exploratory Factor Analysis (EFA), correlation analysis, and binary logistic regression analysis. The results of the study show that 8 factors, including (1) Pressure of international integration; (2) Qualifications of accounting staff; (3) Cost/Benefit; (4) Culture; (5) Impact of domestic and foreign professional organizations; (6) Subjects and needs of using FS information; and (7) Legal system, all have a positive impact on the application of IFRS for SMEs by small and medium-sized enterprises in Vietnam.