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

Abstract

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