Factors affecting the awareness of public units in vietnam when applying international public accounting standards

Ly Lan Yen; Bui Thi Hang; Ngo Thi Thu Hong

Authors

Ly Lan Yen Lecturer, Department of Accounting, Academy of finance, Hanoi, Vietnam https://orcid.org/0000-0003-4156-5967
Bui Thi Hang Department of Accounting, Academy of finance, Hanoi, Vietnam http://orcid.org/0009-0008-7499-039X
Ngo Thi Thu Hong Faculty of Hospitality and Tourism, Thuongmai University, Vietnam http://orcid.org/0009-0003-5624-7520

Keywords:

Vietnamese public accounting standards, Industry, International public accounting standards, public service units

Abstract

Objective: The article examines the factors influencing the awareness of public service units in Vietnam when applying International Public Sector Accounting Standards (IPSAS). It seeks to identify the key elements affecting the implementation of these standards and how public service units in Vietnam perceive them.

Methods: The study employs a survey-based approach, collecting data from 223 public service units across various sectors, including education, health, and public administration. The survey was designed using a 5-point Likert scale to measure the knowledge, experience, and attitudes of accountants and managers towards IPSAS. The analysis was conducted using SPSS 26 software to identify the main factors influencing awareness and implementation costs.

Results: The research identified three main factors influencing the awareness and application of IPSAS: the knowledge and experience of accounting staff, the costs associated with IPSAS implementation, and managerial support. It was found that public units with better-trained staff and strong managerial backing were more successful in adopting IPSAS. However, high implementation costs, particularly in terms of staff training and system upgrades, posed significant challenges.

Contribution: The study provides valuable insights into the challenges of adopting international accounting standards in Vietnam's public sector. It emphasizes the need for improved training and managerial support to ensure successful IPSAS implementation. The findings contribute to the ongoing discussion on the modernization of Vietnam's public accounting practices and provide recommendations for future improvements.

Conclusion: The application of IPSAS in Vietnam's public service units is influenced by several factors, including staff expertise, implementation costs, and managerial support. Addressing these challenges through targeted training and financial investment is essential for the successful adoption of these standards, which are crucial for enhancing transparency and accountability in the public sector.

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