Acta Univ. Agric. Silvic. Mendelianae Brun. 2020, 68(5), 903-913 | DOI: 10.11118/actaun202068050903

Determinants of the Implementation of the Public-Sector Consolidated Financial Statements in Vietnam

Yen Thi Tran1, Thanh Thi Cam Tran2, Trang Cam Hoang3
1 School of Accounting, University of Economics Ho Chi Minh City, Vietnam, 59C Nguyen Dinh Chieu st., District 3, Ho Chi Minh City, Vietnam
2 Faculty of Economics and Accounting, Quy Nhon University, 170 An Duong Vuong, Quy Nhon city, Vietnam
3 Faculty of Finance and Banking, Ton Duc Thang University, 19 Nguyen Huu Tho Street, Tan Phong Ward, District 7, Ho Chi Minh City, Vietnam

The purpose of this study is to identify factors that affect the implementation of the consolidated financial statements (CFS) of the public sector in Vietnam. The study also presented some of the benefits and challenges of implementing CFS in the view of some experts in Vietnam. The majority view of experts thought that the implementation of CFS in the public sector has many benefits, including a financial clarification of the public sector. Nevertheless, Vietnam will face difficulties when implementing CFS such as human resources, infrastructure, and financial resources. The results of the quantitative analysis showed that accrual accounting basis, accounting staff capacity, regulatory environment, and information technology significantly influenced the implementation of CFS of the public sector in Vietnam. The study contributes significantly to theory and practice as Vietnamese policy makers recently issued Decree No. 25/2017/ND-CP on CFS for the public sector. This Decree takes effect from January 1, 2018.

Keywords: consolidated financial statements, benefits, challenges, Decree No. 25/2017/ND-CP, public sector, Vietnam

Received: February 6, 2020; Accepted: September 29, 2020; Published: November 1, 2020  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Tran, Y.T., Tran, T.T.C., & Hoang, T.C. (2020). Determinants of the Implementation of the Public-Sector Consolidated Financial Statements in Vietnam. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 68(5), 903-913. doi: 10.11118/actaun202068050903
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. ADHIKARI, P. and MELLEMVIK, F. 2011. The rise and fall of accruals: A case of Nepalese central government. Journal of Accounting in Emerging Economies, 1(2): 123-143. DOI: 10.1108/20421161111138495 Go to original source...
    2. ANDRIANI, Y., KOBER, R. and NG, J. 2010. Decision usefulness of cash and accrual information: public sector managers' perceptions. Australian Accounting Review, 20(2): 144-153. DOI: 10.1111/j.1835-2561.2010.00087.x Go to original source...
    3. BERGMANN, A. and BIETENHADER, D. 2008. Practises and opinions on consolidated financial reporting in Swiss cities. Workshop on Whole of Government Financial Reporting: International Trends. The University of Siena, Italy.
    4. BERGMANN, A., GROSSI, G., RAUSKALA, I. and FUCHS, S. 2016. Consolidation in the public sector: methods and approaches in Organisation for Economic Co-operation and Development countries. International Review of Administrative Sciences, 82(4): 763-783. DOI: 10.1177/0020852315576713 Go to original source...
    5. BISOGNO, M., SANTIS, S. and TOMMASETTI, A. 2015. Public-Sector consolidated financial statements: An analysis of the comment letters on IPSASB's exposure draft No. 49. International Journal of Public Administration, 38(4): 311-324. DOI: 10.1080/01900692.2015.999605 Go to original source...
    6. BORITZ, J. E. and CARNAGHAN, C. A. 2003. Competency-based education and assessment for the accounting profession: A critical review. Canadian Accounting Perspectives, 2(1): 7-42. DOI: 10.1506/5K7C-YT1H-0G32-90K0 Go to original source...
    7. CARINI, C., GIACOMINI, D. and TEODORI, C. 2019. Accounting reform in Italy and perceptions on the local government consolidated report. International Journal of Public Administration, 42(3): 195-204. DOI: 10.1080/01900692.2017.1423500 Go to original source...
    8. CARINI, C. and TEODORI, C. 2019. Making financial sustainability measurement more relevant: An analysis of consolidated financial statements. In: Financial Sustainability of Public Sector Entities. Springer. Go to original source...
    9. CHOW, D. S. L., POLLANEN, R., BASKERVILLE, R., AGGESTAM-PONTOPPIDAN, C. and DAY, R. 2019. Usefulness of consolidated government accounts: A comparative study. Public Money and Management, 39(3): 175-185. DOI: 10.1080/09540962.2018.1535034 Go to original source...
    10. CHRISTIAENS, J., REYNIERS, B. and ROLLÉ, C. 2010. Impact of IPSAS on reforming governmental financial information systems: a comparative study. International Review of Administrative Sciences, 76(3): 537-554. DOI: 10.1177/0020852310372449 Go to original source...
    11. CĪRSTEA, A. 2014. The need for public sector consolidated financial statements. Procedia Economics and Finance, 15: 1289-1296. DOI: 10.1016/S2212-5671(14)00590-5 Go to original source...
    12. CĪRSTEA, A., NISTOR, C. S. and TIRON TUDOR, A. 2017. Consolidated financial statements-a new challenge for the public sector administration. Journal of Economic and Administrative Sciences, 33(1): 46-65. DOI: 10.1108/JEAS-04-2016-0012 Go to original source...
    13. GOLDBERG, L. 1965. An inquiry into the nature of accounting. American Accounting Association Monograph No. 7. Menasha, WI: George Banta Company, Inc.
    14. GOMES, P., BRUSCA, I. and FERNANDES, M. J. 2019. Implementing the international public sector accounting standards for consolidated financial statements: facilitators, benefits and challenges. Public Money and Management, 39(8): 544-552. DOI: 10.1080/09540962.2019.1654318 Go to original source...
    15. GROSSI, G. and PEPE, F. 2009. Consolidation in the public sector: a cross-country comparison. Public Money and Management, 29(4): 251-256. DOI: 10.1080/09540960903035031 Go to original source...
    16. GROSSI, G. and STECCOLINI, I. 2015. Pursuing private or public accountability in the public sector? Applying IPSASs to define the reporting entity in municipal consolidation. International Journal of Public Administration, 38: 325-334. DOI: 10.1080/01900692.2015.1001239 Go to original source...
    17. GUTHRIE, J. 1998. Application of accrual accounting in the Australian public sector-rhetoric or reality. Financial accountability and management, 14(1): 1-19. DOI: 10.1111/1468-0408.00047 Go to original source...
    18. HAIR, J. F., BLACK, W. C., BABIN, B. J. and ANDERSON, R. E. 2014a. Exploratory factor analysis. In: Multivariate data analysis. 7th Edition. Harlow: Pearson.
    19. HAIR, J. F., BLACK, W. C., BABIN, B. J. and ANDERSON, R. E. 2014b. Multivariate data analysis: Pearson new international edition. Essex: Pearson Education Limited.
    20. INDRIASIH, D. and KOESWAYO, P. S. 2014. The effect of government apparatus competence and the effectiveness of government internal control toward the quality of financial reporting and its impact on the performance accountability in local government. Research Journal of Finance and Accounting, 5(20): 38-47.
    21. INTERNATIONAL FEDERATION OF ACCOUNTANTS, EDUCATION COMMITTEE. 2001. Competence-based approaches to the preparation and work of professional accountants. Exposure draft discussion paper. New York: IFAC.
    22. IPSASB. 2017. Handbook of International Public Sector Accounting Pronouncements. Vol. II. New York: International Federation of Accountants.
    23. LUDER, K. 1992. A contingency model of governmental accounting innovations in the political administrative environment. In: Research in Governmental and Nonprofit Accounting. JAI Press Inc.
    24. MINISTRY OF FINANCE. 2017. Guiding the public service and administrative accounting regime. Circular No. 107/2017/TT-BTC. Hanoi.
    25. MINISTRY OF FINANCE. 2018a. Guiding the preparation of general financial statements of state accounting units is the superior accounting unit. Circular No. 99/2018/TT-BTC. Hanoi.
    26. MINISTRY OF FINANCE. 2018b. Guiding the preparation of state financial statements. Circular No. 133/2018 /TT-BTC. Hanoi.
    27. MONTESINOS, V. and BRUSCA, I. 2008. Whole of government financial reporting: fashion or necessity. Workshop on whole of government financial reporting: International trends. Siena, Italy.
    28. OFOEGBU, G. N. 2014. New public management and accrual accounting basis for transparency and accountability in the Nigerian public sector. IOSR Journal of Business and Management, 16(7): 104-113. Go to original source...
    29. QUYNH, N. N. 2015. Determining the factors affecting the application of international public accounting standards: "Report of cash flow" into Vietnam. Masters thesis. University of Economics Ho Chi Minh City.
    30. SALEHI, M. and HUSINI, R. 2011. A study of the effect of information technology on internal auditing: Some Iranian evidence. African Journal of Business Management, 5(15): 6168-6178.
    31. SALEHI, M. and TORABI, E. 2012. The role of information technology in financial reporting quality: Iranian scenario. Business Excellence-Poslovna izvrsnost, 6(1): 115-126.
    32. SANTIS, S., GROSSI, G. and BISOGNO, M. 2018. Public sector consolidated financial statements: a structured literature review. Journal of Public Budgeting, Accounting and Financial Management, 30(2): 230-251. DOI: 10.1108/JPBAFM-02-2018-0017 Go to original source...
    33. SANTIS, S., GROSSI, G. and BISOGNO, M. 2019. Drivers for the voluntary adoption of consolidated financial statements in local governments. Public Money and Management, 39(8): 534-543. DOI: 10.1080/09540962.2019.1618072 Go to original source...
    34. SOCIALIST REPUBLIC OF VIETNAM. 2017. Decree on state financial reports. No. 25/2017/ND-CP. Hanoi.
    35. TAGESSON, T. and GROSSI, G. 2012. The materiality of consolidated financial reporting-an alternative approach to IPSASB. International Journal of Public Sector Performance Management, 12(2): 81-95. DOI: 10.1504/IJPSPM.2012.048745 Go to original source...
    36. VAN, C. T. C. 2016. Study the factors affecting the construction of Vietnamese public accounting standards in the context of applying international public accounting standards. Doctoral thesis. University of Economics Ho Chi Minh City.
    37. WELCH, E. W. and WONG, W. 2001. Global information technology pressure and government accountability: the mediating effect of domestic context on website openness. Journal of Public Administration Research and Theory, 11(4): 509-538. DOI: 10.1093/oxfordjournals.jpart.a003513 Go to original source...
    38. WISE, V. 2010. Theory and accountability: The case of government consolidated financial reporting. International review of business research papers, 6(5): 82-97.
    39. XU, H., HORN NORD, J., DARYL NORD, G. and LIN, B. 2003. Key issues of accounting information quality management: Australian case studies. Industrial Management and Data Systems, 103(7): 461-470. DOI: 10.1108/02635570310489160 Go to original source...
    40. ZIMMERMAN, J. L. 1977. The municipal accounting maze: An analysis of political incentives. Journal of Accounting Research, 15: 107-144. DOI: 10.2307/2490636 Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content