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Measurement of Formal Convergence of Vietnamese Accounting Standards with IFRS

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  • Anh Tuan Nguyen
  • Guangming Gong

Abstract

type="main"> Convergence refers to the process of narrowing the differences between International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) and country-specific accounting standards. The purpose of this study is to measure the formal convergence between Vietnamese Accounting Standards (VAS) and IAS/IFRS using a fuzzy-based approach. We assess the extent of convergence between VAS and IAS/IFRS from the perspective of a single standard, clusters of standards and the standards as a whole. The levels of standards convergence are clustered into four categories: full convergence, substantial convergence, substantial difference and complete difference. Our results indicate that the level of convergence between the two sets of standards only achieves mid-level convergence. The findings of this study should help policy makers improve VAS to meet international standards.

Suggested Citation

  • Anh Tuan Nguyen & Guangming Gong, 2014. "Measurement of Formal Convergence of Vietnamese Accounting Standards with IFRS," Australian Accounting Review, CPA Australia, vol. 24(2), pages 182-197, June.
    • Handle: RePEc:bla:ausact:v:24:y:2014:i:2:p:182-197
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    File URL: http://hdl.handle.net/10.1111/auar.12033
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    References listed on IDEAS

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    2. Vladimir Obradović & Milan Čupić & Dragomir Dimitrijević, 2018. "Application of International Financial Reporting Standards in the Transition Economy of Serbia," Australian Accounting Review, CPA Australia, vol. 28(1), pages 48-60, March.

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