SURVEY BOOKLET

Swinburnes 2012 IAS/IFRS Convergence in Vietnam

Instruction
The survey is to evaluate the support given to the convergence process of Vietnamese Accounting Standards (VAS) with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) in Vietnam. The target participants are auditors, financial statement preparers/users, accounting academics, financial analysts and business executives who have general knowledge about VAS, IAS/IFRS and the accounting practices in Vietnam. The findings of the survey are for a doctoral thesis and related publications of the researcher. Your participation is voluntary and that you are free to withdraw from the project at any time without explanation. It takes approximately 20 to 30 minutes to complete the survey. Your anonymity is preserved and you will not be identified in any publications. There are no right or wrong answers. All we are interested in. is your perception related to IAS/IFRS implementation. Place (X) in an appropriate square or fill in the provided space if required. Please ensure that you answer ALL questions. Missing question(s) might result in the whole questionnaire being invalid.

This survey has been approved by or on behalf of Swinburnes Human Research Ethics Committee. If you have any questions regarding this project, please contact: Ms Duc Hong Thi Phan, Student Researcher, Email: duchongthiphan@swin.edu.au Dr Nicholas Mroczkowski, Coordinating Supervisor, Email: nmroczkowski@swin.edu.au Dr Meropy Barut, Associate Supervisor, Email: mbarut@swin.edu.au
Faculty of Business and Enterprises Cnr William and Wakefield Street Hawthorn Mail H25 PO Box 218 Hawthorn Victoria 3122 Australia Telephone +61 3 9214 8000 Facsimile +61 3 9819 5454 http://www.swin.edu.au Copyright 2012 Duc Hong Thi Phan

Please return the completed questionnaire using the enclosed envelope. No stamp is required

Letter of Introduction
Friday, 06/04/2012 Dear sir/madam, I am currently a PhD student at Swinburne University of Technology, Australia. I am conducting research which examines the extent of the convergence progress of Vietnamese Accounting Standards (VAS) with International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) in Vietnam. The findings of the survey will be used for my PhD thesis and for related publications. I would like to invite you to participate in this research project. Participation is completely voluntary. I would be grateful if you could spend 20 to 30 minutes of your time at your convenience to answer the questionnaire. I have sent you two questionnaire booklets in both English and Vietnamese languages. Please choose to answer the questionnaire in the language that you feel most comfortable. Please assist me to achieve the maximum response rate by passing on the other booklet to your colleague or manager. I set my goal of 1,000 returned questionnaires to achieve the statistical results which best represent the perceptions of Vietnamese accounting/auditing professionals about IAS/IFRS. Please return the completed questionnaire in the enclosed reply paid envelope or email to duchongthiphan@swin.edu.au. Alternatively, you may prefer to complete the questionnaire online (both English & Vietnamese) at the link http://opinio.online.swin.edu.au/s?s=12114. By completing the questionnaire you will assist in contributing to knowledge regarding the potential advantages, and disadvantages of IAS/IFRS; the challenges of the IAS/IFRS implementation process; the potential influence factors on the acceptance of IAS/IFRS in Vietnam; and what best approaches for the future evolution of Vietnamese accounting standards are available in light of the current global movement towards IAS/IFRS. I believe that the findings of the project will assist the Vietnamese Accounting Standard Setters in making favourable decisions affecting accounting practice, which will in turn support social and economic development in Vietnam. Your response to this questionnaire will be kept absolutely confidential. Subsequent reports based on this research will only present aggregate data in statistical form without identifying individual responses. All responses will be coded and the originals destroyed. No identifiable information will be used and all data will be grouped for analysis.

Faculty of Business and Enterprises Cnr William and Wakefield Street Hawthorn Mail H25 PO Box 218 Hawthorn Victoria 3122 Australia Telephone +61 3 9214 8000 Facsimile +61 3 9819 5454 http://www.swin.edu.au

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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This project has been approved by Swinburnes Human Research Ethics Committee (SUHREC) in line with the National Statement on Ethical Conduct in Research Involving Humans. If you have any complaints or concerns about the conduct of this project, please call (+61) 3 9214 5223 or write to. The Chair of Human Research Ethics Committee Swinburne University of Technology PO Box 218, Hawthorn Vic 3122, Australia Email: resethics@swin.edu.au Thank you very much for your time and valued contribution. Should you require any further information about this invitation please do not hesitate to contact me at duchongthiphan@swin.edu.au. Yours sincerely

Duc Hong Thi Phan (Ms) Student Researcher

Faculty of Business and Enterprises Cnr William and Wakefield Street Hawthorn Mail H25 PO Box 218 Hawthorn Victoria 3122 Australia Telephone +61 3 9214 8000 Facsimile +61 3 9819 5454 http://www.swin.edu.au Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan Page 2

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Section 1: Advantages of IAS/IFRS in Vietnam (Instruction: The following is a list of
potential advantages of the application of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) (hereinafter called IAS/IFRS) which have been claimed by the researchers. What are your opinions about each item? Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)

No 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.11 1.12 1.13 1.14 1.15

Advantages of IAS/IFRS in Vietnam 1 2 3 4 5 IAS/IFRS-based financial statements are reliable. IAS/IFRS-based financial statements are relevant. IAS/IFRS-based financial statements are understandable. IAS/IFRS-based financial statements are comparable. IAS/IFRS lead to a higher quality of financial reporting than VAS. IAS/IFRS provide credibility and thus increases shareholders trust. IAS/IFRS make access to global market easier than VAS. IAS/IFRS make external financing easier than VAS. IAS/IFRS improve relationships with creditors. IAS/IFRS improve investors confidence. IAS/IFRS reduce the cost of capital. Conversion to IAS/IFRS reduces the cost of issuing national standards. Conversion to IAS/IFRS reduces the cost of maintaining two sets of financial reporting. Conversion to IAS/IFRS reduces the cost of analysing data provided in the financial reports Other advantage (please specify):

Section 2: Disadvantages of IAS/IFRS in Vietnam (Instruction: The following is a list of

potential disadvantages of IAS/IFRS application which have been claimed by the researchers. What are your opinions about each item? Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)

No 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10

Disadvantages of IAS/IFRS in Vietnam IAS/IFRS are complicated. IAS/IFRS are subjective. IAS/IFRS are time consuming. IAS/IFRS lack the details, therefore creating room for personal interpretation. IAS/IFRS are in a foreign language so they are hard to understand. IAS/IFRS are influenced by political intervention from the developed countries IAS/IFRS are not yet fully accepted globally. IAS/IFRS for Small & Medium Enterprises (SME) are too complicated for the needs of Vietnamese SME. IAS/IFRS increase the risk of corporate fraud. It is impossible to have global accounting standards due to country differences.

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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No Disadvantages of IAS/IFRS in Vietnam 1 2 3 4 5 2.11 Countries like Vietnam do not need IAS/IFRS. 2.12 Countries like Vietnam do not have any voice in the IAS/IFRS setting process. 2.13 National pride is compromised when national standards give way to IFRS. 2.14 Costs of conversion from VAS to IAS/IFRS will outweigh its benefits. 2.15 Other disadvantage (please specify): Section 3: Challenges of IAS/IFRS implementation in Vietnam (Instruction: The
following is a list of potential challenges of IAS/IFRS implementation which have been claimed by the Researchers. What are your opinions about each item? Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)

No 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 3.11 3.12

Challenges of IAS/IFRS implementation in Vietnam 1 2 3 4 5 Updating information technology systems Updating accounting processes Updating auditing processes Managing public perception of changes in financial statements Managing transition workload while maintaining day-today activities Educating non-financial staff/management Educating financial staff/management Insufficient guidance on first-time application of IFRS Lack of timely IAS/IFRS translation into the Vietnamese language Limited coverage of IAS/IFRS in the current university curriculum Other challenge (please specify): If given a choice, would your company consider adopting IAS/IFRS? Please explain why:

Section 4: Readiness of IAS/IFRS conversion in Vietnam (Instruction: When responding

to these statements, focus on your knowledge and experience about IAS/IFRS. Where does your company stand in terms of preparedness for the adoption of each of the IAS/IFRS standards? Please select only ONE number for each statement: 1 Nothing done to date; 2 Have done some planning; 3 Have completed an impact assessment; 4 Have moved beyond an impact assessment; 5 Ready for conversion to IAS/IFRS; NA Not applicable to your company.)

No 4.01 4.02 4.03 4.04 4.05

Readiness of IAS/IFRS conversion in Vietnam First time Adoption of IFRS (IFRS 1) Share-based Payment (IFRS 2) Business Combinations (IFRS 3) Insurance Contracts (IFRS 4) Non-current Assets Held for Sale and Discontinued Operations (IFRS 5)

NA

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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No Readiness of IAS/IFRS conversion in Vietnam 4.06 Exploration for and Evaluation of Mineral Resources (IFRS 6) 4.07 Financial Instruments (IFRS 7, IFRS9, IAS32, IAS39) 4.08 Operating Segments (IFRS 8) 4.09 Consolidated Financial Statements (IFRS 10, IAS27) 4.10 Joint Arrangements (IFRS 11) 4.11 Disclosure of Interests in Other Entities (IFRS 12) 4.12 Fair Value Measurement (IFRS 13) 4.13 Presentation of Financial Statements (IAS 1) 4.14 Inventories (IAS 2) 4.15 Cash Flow Statements (IAS 7) 4.16 Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8) 4.17 Events After the Balance Sheet Date (IAS 10) 4.18 Construction Contracts (IAS 11) 4.19 Income Taxes (IAS 12) 4.20 Property, Plant and Equipment (IAS 16) 4.21 Leases (IAS 17) 4.22 Revenue (IAS 18) 4.23 Employee Benefits (IAS 19) 4.24 Accounting for Government Grants, Disclosure of Government Assistance (IAS 20) 4.25 The Effects of Changes in Foreign Exchange Rates (IAS 21) 4.26 Borrowing Costs (IAS 23) 4.27 Related Party Disclosures (IAS 24) 4.28 Accounting and Reporting by Retirement Benefit Plans (IAS 26) 4.29 Investments in Associates (IAS 28) 4.30 Financial Reporting in Hyperinflationary Economies (IAS 29) 4.31 Interests in Joint Ventures (IAS 31) 4.32 Earnings Per Share (IAS 33) 4.33 Interim Financial Reporting (IAS 34) 4.34 Impairment of Assets (IAS 36) 4.35 Provisions, Contingent Liabilities and Contingent Assets (IAS 37) 4.36 Intangible Assets (IAS 38) 4.37 Investment Property (IAS 40) 4.38 Agriculture (IAS 41)

NA

Q4: What timeline would be required for preparation for full conversion to IAS/IFRS?
Timeline 1 year 2 years 3 years 4 years 5 years Over 5 years

Section 5: Choices of IAS/IFRS implementation in Vietnam (Instruction: The following

is a list of potential choices of IAS/IFRS application in Vietnam. What approach do you believe would suit Vietnam context? Please indicate your choice for each statement listed below. Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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No 5.01

5.02

5.03 5.04 5.05

5.06 5.07 5.08 5.09 5.10 5.11 5.12 5.13 5.14 5.15

Choices of IAS/IFRS implementation in Vietnam 1 2 3 4 5 Adoption or Convergence Full adoption approach, i.e. replace entirely VAS by IAS/IFRS and provide supplementary information only for national issues not addressed in IAS/IFRS (big bang approach). Convergence approach, i.e. introduce IAS/IFRS standard by standard and eventually have Vietnamese accounting system comparable to IAS/IFRS (staggered approach). Adaptation approach, i.e. amend and adjust IAS/IFRS to suit the Vietnamese context. No change approach, i.e. continue with the current VAS, no change is required. Other approach (please specify): Voluntary or Mandatory Allow the voluntary use of IAS/IFRS for all reporting entities Allow the voluntary use of IAS/IFRS only for publicly listed entities Allow the voluntary use of IAS/IFRS only for foreign invested entities Allow the voluntary use of IAS/IFRS only for financial institutions Require the mandatory use of IAS/IFRS for all reporting entities Require the mandatory use of IAS/IFRS only for publicly listed entities Require the mandatory use of IAS/IFRS only for foreign invested entities Require the mandatory use of IAS/IFRS only for financial institutions Do not allow IAS/IFRS at all. Other approach (please specify):

Q5: What timeline would be required for preparation for the above choice of IAS/IFRS implementation in Vietnam?
Timeline 1 year 2 years 3 years 4 years 5 years Over 5 years

Section 6: Factors influence on the acceptance of IAS/IFRS in Vietnam (Instruction:

The following is a list of factors which have been claimed by the researchers to influence the acceptance of IAS/IFRS in a developing country like Vietnam. What are your opinions about each factor? Please select only ONE number for each statement: 1 Strongly disagree; 2 Disagree; 3 Undecided; 4 Agree; 5 Strongly agree.)

No

Factors influence on the acceptance of IAS/IFRS in Vietnam External pressures from multinational lending agencies and donors 6.01 World Bank (WB)

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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No 6.02 6.03 6.04 6.05 6.06 6.07

6.08 6.09 6.10 6.11 6.12 6.13

6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31

Factors influence on the acceptance of IAS/IFRS in 1 2 3 4 5 Vietnam Asian Development Bank (ADB) International Monetary Fund (IMF) International Finance Corporation (IFC) World Trade Organisation (WTO) Japanese Official Development Assistance (ODA) fund Korean Official Development Assistance (ODA) fund External pressures from International Professional Bodies International Federation of Accountants (IFAC) The Association of Chartered Certified Accountants (ACCA) The Society of Certified Practising Accountants of Australia (CPA Australia) Asean Federation of Accountants (AFA) Asian-Oceanian Standard-Setters Group (AOSSG) International Accounting Standards Board (IASB) Internal pressures from associations/organisations in Vietnam Vietnam Association of Certified Public Accountants (VACPA) Vietnam Accounting & Auditing Association (VAA) International accountancy firms (i.e. Big Four audit firms) Academic of large accounting universities Industry Leading Enterprises Multinational Corporations Key trading partner countries Other factors Needs to attract more foreign direct investment Needs to raise finance in international capital market Needs to enhance the development of national stock exchange market Needs to enhance national reputation as being in compliance with international rules Lobby from the leading publicly listed companies Lobby from the leading foreign companies Requirements of financial institutions and major creditors Requirements of state regulatory authorities Following Asian countries which successfully adopted or converged to IAS/IFRS Following the trend of over 120 countries which permit or require IAS/IFRS Other factor (please specify)

Q6. In your opinion, what top three factors have most significant influence? Please provide the factor numbers (e.g. 6.xx) _____________________________________________________________________

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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Section 7: Recommendation to Vietnamese Accounting Standards Committee VASC (It is optional. However, the aggregate findings of the study will be forwarded to the Vietnamese
Accounting Standards Committee. So please do not hesitate, be direct and honest.)

Q7.1 What top three accounting issues/standards should be viewed as priority in the path to converge VAS towards IAS/IFRS?
i. _____________________________________________________________________ ii. _____________________________________________________________________ iii. _____________________________________________________________________

Q7.2 Do you have any other recommendation to VASC? (give details if any) _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ Section 8: Background of the respondent (Thank you. I would now like to finish off with some
questions about your organisation and yourself for statistical purposes.) 8.1 Your Gender 8.2 Your Age 8.3 Your Highest Academic Qualification 8.4 Main language of highest qualification 8.5 Member of professional bodies (select as many as appropriate) 8.6 IFRS training Male Under 21 High school Female 21-30 Vocational 31-40 Diploma 41-50 Bachelor 51-60 Master Over 60 Doctorate

Vietnamese

English

Other, please specify:

None

VACPA

VAA

ACCA

CPA Australia

Other (specify) .......

Self-study

VACPA

VAA

ACCA

CPA Australia

Other (specify) ....... Over 20 years

8.7 Years of working experience 8.8 Years of living overseas 8.9 Self-assessment about IAS/IFRS knowledge (out of 10) 8.10 Level of IAS/ IFRS knowledge required at work (out of 10) 8.11 Frequency of IAS/ IFRS use at work 8.12 What role best describes you when answering this survey? 8.13 Your current position

Less than 1 year None

1-5 years

6-10 years

11-15 years

16-20 years

1 year

2 years

3 years

4 years

Over 4 years

Not at all (0 point)

Very poor (1-2 points)

Poor (3-4 points)

Average (5-6 points)

Good (7-8 points)

Excellent (9-10 points)

Not required (0 point)

Very basic (1-2 points)

Basic (3-4 points)

Average (5-6 points)

Good (7-8 points)

Excellent (9-10 points)

Never

Few times per year Financial report user

Few times per quarter Auditor

Few times per month Lecturer

Few times per week Researcher

Daily

Financial report preparer Junior

Other (specify)

Senior

Team leader

Manager

Head of the organisation

Other (specify) ..

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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8.14 What sector do you work for? 8.15 Type of ownership of your organisation 8.16 Total employment of your organisation 8.17 Location of your organisation 8.18 Number of countries in which your organisation operates? 8.19 What is your organisations country of origin

Manufacturing

Commercial

Service

University

Government

Other (specify) Other (specify) .. Over 300

100% foreign owned Under 20

Jointventure 20-50

Publicly listed 51-100

Stateowned 101-200

Privateowned 201-300

Ho Chi Minh city 1 country

Binh Duong

Dong Nai

Ha Noi

Da Nang

Other (specify) Over 5 countries

2 countries

3 countries

4 countries

5 countries

Vietnam

Korea

Taiwan

Singapore

Malaysia

China

Australia 8.20 Percentage of last years overseas revenue 8.21 Core standards in your organisations consolidated reports 8.22 Who is your audit firm? None

USA 1- 20%

UK 21-40%

France 41-60%

Germany 61-80%

Other (specify) 81-100%

VAS only

VAS with IAS/IFRS reconciliation Non- Big 4 international Audit firm Positive

VAS with US GAAP reconciliation Stateowned Audit firm No effect

VAS and IAS/IFRS (2 sets of reports) Privateowned Audit firm Negative

VAS and US GAAP (2 sets of reports) State Audit firm

Other (specify) .... ....

Big 4 Audit firm

Not required audit

8.23 Impact of IAS/IFRS conversion to your organisation 8.24 Estimated cost of IAS/IFRS conversion

Extremely positive

Extremely negative

Dont know

Dont know

About ..million dong

THANK YOU VERY MUCH FOR COMPLETING THE SURVEY!

Interview invitation This survey is Stage One of the project IAS/IFRS Convergence in Vietnam. Stage Two of the project involves an interview process of about 40 survey respondents. If you are willing to participate in the interview process, the researcher would be pleased to meet you at a time, date and location convenient to you. A telephone conversation is a feasible alternative should that be preferable to you. We anticipate that between 30 minutes to an hour of your time will be required during the interview process. Please indicate your willingness by completing the attached form Expression of Interest in Interview process.

THANK YOU AGAIN FOR YOUR VALUED CONTRIBUTION!

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam

Expression of Interest to participate in an Interview Process

I agree to participate in the interview process involving empirical research on the convergence process of IAS/IFRS in Vietnam and I am happy to further explain my answers in the survey. I also agree that the interview may be recorded by an electronic device on the condition that no part of the recording is included or made public in any way. I agree that the research data collected for the study may be published or provided to other researchers on the condition that anonymity is preserved and that I or my organisation cannot be identified or otherwise without the prior express written consent of the participant. By signing this document, I express my interest in the interview process.

Date: Signature of Participant: ..

Name of Participant: ..... Address: ....................... Email: .. Contact number: ..

Survey: Swinburnes 2012 IAS/IFRS Convergence in Vietnam Copyright 2012 Duc Hong Thi Phan

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