IFRS adoption

Satisfactory Essays
Over the past decade, market oriented economic reforms occurred in Eastern Europe, Latin America, and Asia have resulted in the development of emerging capital markets and the need for the harmonization of international accounting standards (Harri, 1999). In Vietnam, the reform from Vietnam Accounting Standard (VAS) to International Financial Reporting Standard (IFRS), which allow all business from different part of the world speak “the same unique accounting and financial language”(Nguyen 2012), aims to further strengthen its relationship with Multinational Corporations and will enhance it sustaining economic growth. This essay is writing for the purpose of examining the possibility of IFRS adoption in Vietnam in the future. The first part of the essay briefly introduces the Vietnamese accounting reform from 1986, then, compare the current VAS and IFRS. Secondly, the essay explains the accounting system development in the theoretic framework of globalization. The following part focuses on weighing the benefits and challenges of IFRS adoption in Vietnam. Vietnam economic reform referred as “Doi Moi” launched in 1986 have transformed Vietnam from a “Soviet-style planned economy” to a “socialist-oriented market economy” and created a development success story (world bank, 2011). Macro-economic stabilization, the restructuring of the domestic economy and the steady integration in the region and the global economy has provided a strong socio-economic environment (EIAS, 2011), which positively affect the accounting reform. Based on economic reform as the background conditions, Vietnamese accounting reform can be divided into two major periods, from market economy with socialist orientation (1986-1995) towards globalization (1995 to pr... ... middle of paper ... standard and the conceptual framework that I studied in UK. As a result, I decide to combine these two topic together, analyzing the international accounting standard adoption in developing countries, particular in Vietnam, which is the country I was assigned for group report, in a globalization context. Regarding the group work done in the GIP module, the main difficulties faced in my group was the coloration and task allocation within a big group. I have found out that bigger group does not mean higher productivity. According to the attendance chart, we only have three or four group mate attend the meeting in the first two-week. As a result, we realized that just allocating task to individual and simply put all the individual work together is not sufficient enough to produce a report. In teamwork, communicating and discussing the individual work is important.
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