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Causes of the Vietnam does not entirely apply IAS / IFRS is mostly derived from the reasons of social, political and economic country

a) social factors

I, The level of development of the accounting profession in Vietnam is not adequate to understand and apply the complex rules of IFRS.

The accounting profession in Vietnam still has the aging accountants who were trained and practiced in the old centrally planned economy model. It is very hard for these people to learn and accept new concepts and methods of accounting in the new market such as concept of fair value, and applying professional judgment. This led to their limited offering of judgments regarding personal responsibility or avoiding change new methods.

Ii, Culture of Vietnam is to avoid risks and uncertainties.

By nature, Vietnamese also avoid risk and uncertainty. Thus, a typical Vietnamese accountant avoids calculating accounting estimates or making personal judgments in the accounting job. In addition, to avoid uncertainty, risk and personally responsibility, Vietnamese accountants were instructed to be strictly compliant with rules and principles and follow exactly step by step guidelines. The pre-defined account names and numbers in the chart of accounts is another evidence of reducing flexibility in Vietnamese accounting system to avoid uncertainty. In the socialist era, the cultural life of Vietnamese has been deeply influenced by the cultural of communist nations such as the Soviet Union, China, Cuba and other. The collapse of the Soviet Union in the late 1980s forced Vietnam to transform from “central planning and autarky” to ‘market orientation and international re-integration

Iii, Language gap between English and Vietnamese are great

IAS / IFRS in English and have more complex accounting terms so easy to cause misunderstandings and misleading when translated into another language . While in Vietnam , and the official language is Vietnamese popular , generally completely different...