suitable. Enterprises with a high proportion are enterprises related to the purchase, sale, production and consumption of important products of long-term agricultural crops with high economic value such as rubber, coffee, pepper, cashew, etc.
- Based on objective reality, in Vietnam there are no accounting standards specifically for SMEs like international accounting. Instead, an accounting regime is issued for this group of enterprises, which includes a section discussing accounting standards as the basis for building an accounting regime. These are accounting standards for large enterprises, issued since 2001 but excluding standards that are not used or not fully used to suit the characteristics of SMEs. This exclusionary perspective is in the direction of simplification for SMEs to use conveniently. Compared to the approach of international accounting, our country's approach is similar; but in detail, the language, wording, and expression in international standards are all in the direction of making it easier for users of the standards. The selection of appropriate content for SMEs from an international accounting perspective always aims to balance benefits and costs.
- Along with that standard basis, the accounting regime in Vietnam promulgates a unified accounting account system, which specifically stipulates the recording method (consistent with the measurement principle) and the financial statement system. This is a unique feature of the Vietnamese accounting system. From a macro management perspective, this creates a high level of unity in accounting work, consistent with the capacity of the current accounting team in small and medium enterprises. Those unified regulations, along with the system of guiding circulars, become important documents in the daily accounting work of enterprises. From a comparative accounting perspective, this is a difference from the Anglo-American accounting model, in which accountants only rely on accounting standards to apply them appropriately to the business conditions of their enterprises; auditing and accounting service companies have a significant influence on accounting practices in enterprises through consulting and guiding services for enterprises. In other words, the flexibility of accountants (and more broadly, the role of professional organizations) in Vietnam will be lower than in countries following the Anglo-American model. This difference stems from many reasons, of which the characteristics of the legal system (the Act) are considered the most influential factor.
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- Going into the points where accounting standards for SMEs are not applied or not fully applied, it can be seen that the basic spirit when introducing this content in Circular 133/2016 is to simplify and suit the operating characteristics of SMEs. However, through the research results, it can be seen that the development of accounting standards for SMEs has not focused on the benefit-cost relationship as international practice has done. Once SMEs are able to participate in the financial market more deeply, it is necessary to pay attention to the interests of many information users. That is the benefit of the lender in terms of cash flow as for the BCLCTT, the benefit of the investor in terms of consolidation of consolidated financial statements when the companies are medium-sized and also participate in financial investment, accounting for investments in joint ventures, associates... These issues arise from the characteristics that SMEs are also very diverse in terms of capital scale, ownership form... In addition, the simplification and ease of application in the design of the accounting regime must also pay attention to its logic when designing accounts. For example, merging the accounts 'Provision for price reduction...' into one account reduces the recall and scientific nature when designing an account? Comparing with international accounting standards for SMEs, it can be seen that in Vietnam, the original price principle mainly governs the measurement work, while international standards aim for reasonable prices, although reasonable prices are still an obstacle for SMEs. Accordingly, the application of original price (if any) in international standards is only of concern when the issue of considering costs and benefits is of concern to the enterprise. This means that the flexibility for accountants is very high when choosing accounting policies. Going into details, the standards for SMEs in Vietnam still have many differences compared to international standards. These differences have two basic causes: those transactions do not exist in Vietnam or those transactions already exist but the standards have not mentioned them. This requires continuing to perfect the Vietnamese accounting system in the coming time.
4.1.2. Conclusions related to factors affecting the application of accounting standards in SMEs in Gia Lai province
From the practical application of CMKT in small and medium enterprises in Gia Lai, the author has examined the factors affecting inside and outside the enterprise. The research results show that:
- The rate of accounting standards applied in SMEs in the province
Gia Lai is only above average. Going into the types of standards used, the group of standards with high usage rates are related to standards on revenue, fixed assets, inventories and financial statement presentation. Standards on financial investment, foreign currency conversion... are rarely used. The above figures are related to the characteristics of SMEs in Gia Lai province mainly participating in trade and service activities, with small capital scale, so they rarely participate in complex economic transactions. Due to the lack of data sources for comparison, it is difficult to conclude the situation of applying standards compared to other localities in Vietnam. This raises further research directions to more fully survey the current situation of applying accounting standards in SMEs.
- The model of factors affecting the application of accounting standards has been built but the results are not really convincing as expected, which is related to the sample frame when investigating. The dependent variable used to show the application of accounting standards is the Ratio of standards used. This measurement has been used in many studies in other countries, so it is appropriate to reuse it to consider the situation in Gia Lai. The independent variables are related to the characteristics of the enterprise, such as enterprise size, profitability, bank debt ratio and the awareness of business owners about accounting work. The variables related to the external environment take into account the characteristics of Vietnam, and through factor analysis, the factors of Staff qualifications, Standards guidance documents, Consulting of auditing organizations, tax authorities and benefits when applying accounting standards are the main influencing factors. Because some financial data cannot be obtained directly from financial statements but through survey forms, the quality of financial information for measurement is not high.
- Regarding the model of factors affecting the rate of application of accounting standards, the analysis results show that there are 6 factors affecting the application of accounting standards, of which 5 variables have a positive impact and 1 variable has a negative impact. From the results of the regression equation study, the study shows statistical evidence that can determine the position of the influence of independent variables on the application of accounting standards at SMEs in Gia Lai province. Accordingly, the contribution of each variable in order from most to least influential is:
+ The variable of Business Owner Awareness has the highest proportion, has a positive relationship and contributes 28.8%. This is consistent with the initial prediction that the accounting work of the enterprise is governed by the requirements of the owner for his own purposes. The survey results also show that business owners are really interested in the role of accounting information, and this explains why this factor strongly affects the application of standards in SMEs in Gia Lai. This is an optimistic signal, a positive sign because the behavior and awareness of managers contribute to the innovation and implementation of accounting work in accordance with state regulations.
+ Next is the variable of Accountant's Competency Level contributing 26.2%. This factor has a positive impact on the rate of application of accounting standards. This result shows that the accounting team in enterprises with high-quality employees has a higher rate of application of standards than other enterprises. Good accountants can face the challenges to help enterprises overcome difficulties and develop sustainably. They are an important link for the enterprise's apparatus to operate more smoothly and effectively. The level of staff is important in the accounting work of enterprises and is consistent with the research of many countries on the ability to apply accounting standards when the accounting team is well-trained. In the context of accounting standards in the recent period being too new, updating accounting knowledge is indispensable to serve the accounting work.
+ The variable Benefits from applying standards contributed 21.1%. Most accountants believe that applying accounting standards in SMEs will affect the ability to receive credit, create the ability to expand business, demonstrate responsibility to state management agencies and increase responsibility to the business community. This awareness is an optimistic signal about the importance of accounting information for the business community. Once this is properly recognized, if combined with close supervision by state management agencies on the implementation of accounting laws, good application of accounting standards will create favorable conditions to create a transparent information environment in healthy business conditions, minimizing risks for all businesses in the entire system. Regular and complete application of accounting standards in enterprises for
will bring certain benefits to businesses: Improving the business environment, sustainable development and attracting investment capital, enhancing the transparency of financial information, honestly reflecting the situation of the enterprise is what investors are always looking for in the process of making their investment decisions. This helps businesses to access many capital flows in the market, improve the transparency and comparability of financial statements in businesses. Regarding the benefits of applying accounting standards, accountants' awareness has shown many positive signs. The survey results show that businesses appreciate that compliance with accounting standards demonstrates responsibility to management agencies and the business community. Of course, from awareness to action is a process because in reality, the situation of preparing financial statements in SMEs in Gia Lai province is not high, but it also shows that this awareness can contribute to changing the better application of accounting standards. The survey results also show that businesses have highly appreciated the ability to expand their business and receive credit from banks through the good application of accounting standards. This means that SMEs have gradually benefited from a well-drafted financial statement. In summary, the benefits of applying accounting standards can be concluded that accountants see the benefits from the management of state agencies and see the benefits from other organizations.
+ The debt ratio variable contributes 16.5% and has an inverse relationship. This is contrary to the hypothesis that the higher the level of borrowing, the less people apply accounting principles. This result shows that the reports of enterprises are adjusted subjectively to have good data and financial statements when mobilizing loans from banks and credit institutions.
+ Tax consulting and accounting services contribute 10.5%. The team of tax officers providing tax consulting and accounting services for businesses in compliance with the law is very necessary. They not only provide newly established companies with services such as consulting, accounting for tax declarations, answering questions in the field related to accounting and taxes. For accountants, receiving advice from these organizations will make them feel more secure in their expertise, limiting risks in their work. Regarding the favorable relationship
The relationship is based on the ratio of standards used, meaning that the more advice from the business community, the higher the ratio of standards used. Explaining this relationship, the author argues that each standard is associated with a specific subject of accounting regulation, and thus, accounting and tax advice is often related to specific economic transactions (related accounting standards). The consulting aspect here is the integration of advice from the tax authority's propaganda department and advice from accounting service companies. This originates from the confusing accounting standards, although there are guidance documents, sometimes the application is still difficult to understand, and it is necessary to rely on the support of professional organizations. This conclusion is of great significance to perfecting the set of accounting standards when many people assess that accounting standards are difficult to understand for application in SMEs.
+ Finally, the factor with the lowest impact is the Enterprise Size variable, contributing 9.4%. The survey results show that this factor has a positive relationship and is statistically significant. This factor has a wide impact because it is related to the field, area of operation of the enterprise, financial resources, human factors, and information asymmetry between managers and owners. This explains that the larger the enterprise, the higher the rate of accounting standards used, because it requires more scientific basis to handle economic transactions. Large scale corresponds to many complex economic transactions, such as financial investment, joint ventures, associations, financial leasing or real estate business... and therefore, the application of accounting standards will be more complete. The survey results on the rate of application of standards can show that the scale of enterprises in Gia Lai is small, operating mainly in the field of trade and services, and therefore has little impact on the rate of application of standards used.
The accounting system in Vietnam has undergone significant changes in recent years, gradually separating accounting and tax. However, this process is not simple because tax has greatly influenced the way of accounting in enterprises. Research results at enterprises in the sample show that enterprise accountants only focus on recording for tax purposes rather than accounting purposes, and many opinions do not distinguish between accounting for tax purposes and accounting purposes. This is a point to consider about the beneficiaries of accounting information of SMEs - tax authorities have a greater influence.
other subjects, while the accounting reform in recent times in Vietnam has been aimed at many users. In addition to the above problem, the survey results also show that accounting standards are difficult to understand and apply and the limited capacity of accountants are also factors affecting the implementation of accounting standards in SMEs. In addition, business owners are also gradually paying attention to the role of accounting information in management.
4.2. Policy implications related to the application of accounting standards in SMEs
In the global economic development, the application of accounting standards in enterprises has become an essential issue, having important significance in the existence and development of enterprises. We have seen many benefits when enterprises apply accounting standards. In Vietnam, the application of accounting standards in SMEs is still a matter of concern and needs to be studied. From theory to practice, the application is experiencing many challenges and difficulties. Therefore, the study to improve the level of application of accounting standards in SMEs has become a research topic that many authors are aiming for. Through the results of the survey on the application of accounting standards - the case of SMEs in Gia Lai province, the author has also boldly put forward a few implications to help SMEs apply accounting standards more flexibly and effectively.
4.2.1. General implications
To apply CMKT in SMEs more effectively and at a higher rate, from a macro perspective, it is necessary to pay attention to the following issues:
One is: Changing the perception of business owners about the role of accounting information to be able to influence the application of accounting standards. When applying accounting standards fully, it will help businesses manage capital well, increase access to capital at the lowest cost and create prestige with investors, creditors and customers.
Second: Building a team of qualified and competent accountants through training courses. Accounting training institutions in Vietnam, especially universities, need to update and change their training programs in general and their subjects in particular so that learners can understand the nature of accounting standards and practice those standards. The training system in the specialized field of accounting needs to be improved.
in quality from college and university levels. Organizing regular training courses after graduation at school will also contribute to the continuous improvement of the ability to grasp new knowledge about accounting. This is an important factor, contributing to the quality of applying accounting standards as the results of quantitative research have shown. Improving the qualifications of the accounting staff, guiding the approach as well as the necessity when applying accounting standards, avoiding potential thinking about coping, popularizing compliance and application of accounting standards is really necessary and important in all enterprises. Building an accounting apparatus suitable for the management structure of the enterprise. Determining the number of accounting staff needed to undertake the amount of accounting work. Finding qualified accountants suitable for the development scale of the enterprise to save costs. In addition to improving professional qualifications, it is also necessary to pay attention to the internal information connection system and accounting software of the enterprise. Accountants must be flexible and have access to information technology, updating documents and software related to financial information in the most timely and accurate manner.
In the process of handling accounting work, accountants must have regular and close contact with related parties to be able to exchange and learn experiences in applying accounting standards, handle business operations quickly and accurately, meet the information needs of managers, investment partners of the enterprise... ensure transparency, accuracy and high efficiency on the financial statements that the enterprise has provided. The accounting team must constantly learn and improve their professional qualifications in both theory and practical experience. This is an important factor for the application of accounting standards to be in-depth, requiring the accounting team to always promote the role of an effective assistant to the administrator.
Third: Promote accounting and auditing services. Maximize the effectiveness of these organizations. Auditors and tax consultants are the ones who understand and grasp accounting standards and regimes more promptly and easily. Consulting opinions from these subjects are often highly reliable for accountants because some accountants themselves do accounting work to avoid auditing and inspection. Strengthen supervision of accounting work, prevent the situation