international financial reporting standards the awareness of accounting students in banking academy

The harmonization in accounting is the process of reducing differences, theconvergence is the application of a common accounting system around the world.Currently, many countries activel

ADVANCED PROGRAM

TOPIC International Financial Reporting Standards: The awareness of accounting

students in Banking Academy

Subject : International Accounting

Lecturer : Dao Nam Giang

Group member : Le Thi Thao Van – 224020040

Ngô Thị Hoài – 22A4020157 Pham Le Hung – 22A4010602 Dang Le An Khanh – 224020101

Ha Noi, 2022

4.2.4 Correlation analysis between the dependent variable and the new representative variable 26

Table 1 Summary variables 9

Table 5 Results of Cronbach's alpha testing with Interest factor 17 Table 6 Results of Cronbach's alpha testing with Knownledge factor 18 Table 7 Results of Cronbach's alpha testing with Method factor 19 Table 8 Results of Cronbach's alpha testing with Expectations factor 20

as solving many problems in the preparation of financial statements (FS), supportivelycomparing the information in FS, saving and faster for investigators in countries,meeting the globalization process (Vansteeger, 2005; Anh T.C., et al, 2019) On theother hand, some argue that harmonization and convergence can devalue nationalidentity and affect the political system of a country Besides, application processrequires a lot of time and resources, which makes some countries change hesitantlythe accounting system, especially Code law countries (Huong P.T., 2021; Carlos &Martı´nez, 2016) Therefore, this process has many challenges to achieve the goal ofharmonization and convergence in accounting standards

1.2 The trend of international accounting harmonization

In 2021, about 90 countries have fully complied with IFRS as established by theIASB and include a statement admitting such compliance in audit reports, but about

120 nations and reporting jurisdictions permit or demand IFRS for domestic listedbusinesses In many countries, IFRS has replaced all national accounting standards to

facilitate the attraction of global investors A lot of countries take part in theharmonize and converge in accounting such as European Union (EU), OECD, IFAC,IFAD, IOSCO, etc In 2000, IOSCO recommended that its members allowmultinational issuers to use the International Accounting Commission (IASC)standards.) in services and intersect lists According to EC Directive 1606 ratified bythe European Parliament in July 2002 In accordance with this Directive, all members

of the European Union and members of the European Economic Area (EEA) arerequired to apply IFRS on the Financial Statements of listed enterprises starting fromthe accounting period ended 31/12/2005 In 2002, IASB and FASB signed theNorwalk agreement to develop a high-quality accounting standard on a global andNovember 2007, SEC accepted a new regulation allowing listed foreign companies on

a US stock exchange are prepared finance statement in accordance with the IFRS ofthe IASB without the adjustment to US GAAP In Asia, under the pressure of worldeconomic integration, countries also have new regulations towards internationalaccounting convergence In 2006, China issued a new Chinese accounting standards(CAS) with 38 standards based on IFRS and started applying in 2007 In 2011, inKorea, listed companies, financial institutions, state-owned companies and publicinterest entities are all required to apply IFRS to present both the consolidated andseparate financial statements In addition, non-listed companies are free to apply IFRS

or K-GAAP voluntarily Listed foreign companies on the Korean market have theright to choose IFRS, K-IFRS and US GAAP standards to prepare and present theirfinancial statements

Since the 2000s in Vietnam, the advent of stock market and the need ofaccounting standards are required to reflect the financial position of enterpriseshonestly and reasonably By 2006, Vietnam has issued 26 Vietnamese accountingstandards integrated into the corporate accounting according to 15/2006/QD-BTCbased on the IASB’s standards In 2014, the Ministry of Finance issued circular 200TT-BTC to replace the previous decision However, this process faces many obstacles

The first is the large difference between IFRS and VAS, which takes a long time toapply in practice Next, the lack of resources for the transformation is also a problemconcerned about, businesses applying IFRS for the first time will spend at least 2-3years for training and preparing data for financial statements under IFRS for the firsttime (Huong P.T., 2019).

Therefore, the trend of harmonization and convergence of accounting bringsmany opportunities and challenges for accountants, especially students majoring inaccounting and auditing Consolidating knowledge about IFRS for students with thehope to train high-quality employees for the future is focused by many countries, such

as countries in the EU, ASEAN countries, and United Arab Emirates, etc.Governments believed that training student IFRS effectively will make theharmonization and convergence process easier, reducing time and money Thus,integrating IFRS teaching has become the priority choice of colleges and universitiesaround the world However, many barriers exist and the redirection of teaching IFRS

is different in the countries of (Stoner & Sangster, 2012) Particularly, this change cancause significant difficulties for lecturers at UK universities because UK accountingregulations have similarities with IFRS It also makes difficult for countries havingweak accounting systems such as Vietnam, Malaysia, etc This may affect the level ofawareness of accounting and auditing students towards the IFRS application.1.3 Purpose

Based on the above, this research will give some views about the factorsaffecting the students' awareness level to the IFRS application It has some objectives:(i) Considering the difference in awareness level of applying IFRS of students group:trained in English and not, advance program students and normal students (ii) Buildthe model of factors impaction: interest, knowledge, teaching and learning method,expectation and consider their impacted trends to students’ awareness level.Identifying the factors having the greatest influence on students' awareness of the

application of IFRS (iii) Give some recommendations for the Banking Academy andother universities.

The research including seven parts The first part will summarize some theories

of accounting harmonization and convergence, second part will point out the trend ofharmonization and convergence in the world and Vietnam, part 3 will review theresearch results, study new point in this research, using data quantification methodand presented some theoretical Part 4 is the results after using the regression modeland draws some significant results Part 5 discusses the results as well as compareswith previous studies to show the new point of the model and give somerecommendations Finally, summarizing the main issues and pointing out thelimitations of it

2 Literature review

The cognitive level of IFRS students has been extensively explored and studied

in empirical studies Most authors tend to learn about factors that affect students'perceptions such as Interest teaching methods and knowledge ,

Interest of student with IFRS

Tobias, (1994); Hidi, (1990) suggests that interested variables can indirectlyinfluence on research learning An individual is interested in something, and theindividual feels happy to participate in it If someone is interested in something, he orshe will pay attention and tend to discover that issue more (Widaningrum et al, 2010).Besides, interest in a subject can be an important lens through which to considerwhether teaching methods are appropriate, as well as how to choose to measurestudents' experience in that subject (Van, 2017) Previous research found byWidaningrum et al, (2010) suggests that students' interest in learning has a positiveimpact on IFRS understanding Students who feel interested in IFRS will easilyunderstand IFRS because of their interest in reading and learning about the material ofIFRS Research conducted by Dewi et al, (2019) shows that students will better

understand IFRS if their love and interest in learning is high Whether or not theapplication of IFRS is effective depends primarily on the student's desire tounderstand and interest in the topic If students are knowledgeable about the positiveimpact of an IFRS accounting course, they are more likely to take these courses whencolleges or universities organize to consolidate their knowledge of IFRS (Patro,2012).

Knowledge

IFRS emphasizes comprehensibility, that is, the user has a certain level ofunderstanding of the relevant knowledge and the ability to continuously studyfinancial information Thus, the willingness and having good learning goals will affectthe understanding of IFRS while with the learning experience it is the opposite.Specifically, students are knowledgeable, or have learning experiences that do notaffect the IFRS knowledge they receive (Septriana & Fuad, 2020) In the study ofAbdullah et al, (2017) research in Kuwait, a Middle East country showed that most ofthe students who studied in particular - business administration - can gain knowledgeabout IFRS through the chapter The study provided by the university for them Studyprograms in Kuwait provide information about IFRS through several accountingcourses, and many students surveyed know nothing about IFRS before taking anIFRS-related accounting course and becoming motivated to learn about IFRS.However, many students in the survey were not aware that Kuwait had adopted IFASand required all companies to list on the Kuwait Stock Exchange Thus, knowledgedoes not affect students' perceptions of IFRS application In contrast, the previousresearch was conducted by Helen & Raymond, (2013) shows the audit accountant inHong Kong, very few students realized that the Accounting Standards Council inHong Kong approved IFRS if they lack of knowledge about IFRS in education in acountry compared to countries that have applied IFRS will lead to a lack of awareness

of the application of IFRS

Methodology of teaching in university and learning of students

The teaching and learning of International Financial Reporting Standards (IFRS)are important for global accounting convergence and harmonization The study ofIFRS teaching methods in India indicates that the successful integration of IFRSknowledge into the accounting curriculum depends on the effective training oflecturers or instructors, as well as the high requirements for the use of teachingmethods suitable for students In addition, reading materials related to IFRS forstudents' research and research need to be available and complete (Patro, 2012).Lakew & Musa, (2019) has studied issues in IFRS teaching at Ethiopian universities.They found that the level of preparation and ready to integrate IFRS in subjects is low

in most universities The lack of textbooks as well as materials about IFRS alsoaffects the process of improving students' knowledge of IFRS This is similar in thestudy of Ebaid, (2021), however Ebaid, (2021) further indicates that there are threemajor barriers that cause students' perception of IFRS to be low Of those threebarriers, it is not only the lack of documentation but also the weakness inincorporating IFRS into the accounting curriculum and the lack of practicalexperience of IFRS teachers Meanwhile, Septriana and Fuad, (2020) examined theinfluence of academics, learning experiences, learning behaviors, and quality teaching

of faculty on the understanding of IFRS among accounting students in Indonesia Theadvantages and disadvantages of the teaching quality of lecturers do not affectstudents' understanding of IFRS, the main reason is that students are not interested aswell as ready in improving knowledge about IFRS

The level of student’s expectation

IFRS research has many benefits like helping future accountants to develop theirskills in making transactions not only in accounting and taxes but also helping tomake management and investment decisions in the operation of the business later.Students in Indonesia believe that studying IFRS can help and be very helpful forthem in making future decisions (Dewi et al, 2019) Research by Warsono & Salam,(2010) shows that the level of expectations in learning affects the IFRS needs of the

students When there are high future expectations, learners expect to have adequateknowledge in the field of accounting Meanwhile, the application of the knowledgelearned in practice is the most important, however, students need to master thespecialized knowledge of accounting n the study of Abdullah et al, (2017), KuwaitiBusiness Administration students were asked about their knowledge, benefits,importance, and reasons to learn IFRS Those who are asked to study IFRS willbenefit them when they conduct research and support them in finding proper jobs inthe future They think the IFRS research assists them in finding jobs in Kuwaiti listedcompanies since they applied IFRS In other words, a good knowledge of IFRS iscrucial to the development of a student's future career Dong et al, (2019) argue thatresearch on how to teach and learn International Financial Reporting Standards(IFRS) is critical to global accounting convergence In China, many IFRS accountingstudents experienced the educational programs of the Association of Certified PublicAccountants (ACCA) The study found that this intensive approach contributes tobetter academic performance in ACCA's global exams at both basic and professionallevels, making it easier for students to find work in the future.

3 Research method

3.1 Research method

Preliminary research: Conducted through qualitative research with interview

techniques and focus group discussions on determining the clarity and relevance ofterms and questions in the questionnaire Based on that, the research team comparesthe similarities and differences between the original questionnaire and therespondents' responses, thereby supplementing and forming the official interviewquestionnaire

Formal research: quantitative research method using detailed questionnaires to

collect data and using SPSS software to process data:

● Sociological survey: opinions of informants through questionnaires

● Statistics: After being answered, we will statistically input theinterview samples to serve the processing and testing process.

● Quantitative method: regression model

This study aims to test the proposed model and hypothesis and measure theimpact of factors related to the acquisition of IFRS The collected data will beencrypted, entered, cleaned, and processed with SPSS software

3.2 Research design

The study used two methods: qualitative research and quantitative research

Research by the qualitative method: Collecting the feedback of accounting and

auditing students through direct interviews to investigate the factors affecting theperception of students majoring in Accounting - Auditing with IFRS, then synthesize theopinions of students majoring in Accounting - Auditing of Banking Academy, …

Research by the quantitative method: Information is collected by interviewing

students through questionnaires with convenient sampling After that, we synthesized itthrough descriptive statistical analysis, scale testing (Cronbach's Alpha), and exploratoryfactor analysis (EFA) with SPSS software

3.2.1 Research process

First, we carry out preliminary research: the research problem is to assess theperception of Banking Academy students with IFRS International Financial ReportingStandards by implementing a research model through the design of questions, testsurveys and edit questionnaires

The second is formal research: collecting official data, processing data throughSPSS software, and finally making conclusions and recommendations

3.2.2 Design

Location: Banking Academy

Survey object: students are majoring in Accounting – Auditing in Banking

Academy These subjects are directly learning and absorbing knowledge close to thetopic, including the group of students trained under the high-quality program and thegroup of students of the mass system

3.2.3 Scale

The variables in the questionnaire were measured using the Likert scale on a point scale Because the level scale is often used in market research and consumerbehaviors research, the 5-level Likert scale was chosen to serve the research topic Theselection group uses 2 Likert scales: Measure the level of understanding and agreementwith the choice from 1 to 5 as follow:

of the IFRS International Financial Statements:

Interest: 5 Obs

Knowledge: 5 Obs

1 IFRS has many standards derived from actual transactions

2 Access to IFRS helps students integrate with global accounting trends

3 The IFRS standards are clearer and easier to understand than the VAS standards

4 IFRS Standards are more accessible than VAS

5 Improve job opportunities

Method

1 Available material for studying IFRS

2 Adequate learning material resources at school

3 Being easy for Self-learning

4 Integrated IFRS in accounting curriculum

5 Field trip at enterprises applying IFRS

Knowledge

1 IAS 15: Assets held for sale and discontinuous operation

2 IAS 20: Accounting for Government Grants and Disclosure of Government Assistance

3 IAS 36: Impairment of Assets

4 IFRS 12: Disclosure of Interests in Other Entities - IFRS

5 IFRS 13: Fair value measurement

Expectations

1 Better jobs and a lucrative salary

2 Pursue professionalism with international certifications: ACCA, Chartered accountancy

3 Probably work in many countries

4 Preparation of a knowledge ready base when Vietnam has changes in accounting standards

6 Easily partake in international accounting community

3.2.4 Data collection methods

The purpose of collecting information (from previous scientific researchdocuments, observations and performing experiments) is to provide a basis forscientific reasoning or evidence to support hypotheses or problems that the researchset out

● Applying qualitative research methods to collect documents fromvarious sources, such as topics, and scientific articles on the same topic, to buildtheoretical models and scales

● Survey method by questionnaire: to get information about theassessment of the influence of factors on the access to IFRS The research model

of the group includes 21 observed variables; the group will collect 105 samples toensure the representativeness of the research topic

3.2.5 Define research variables

interestrealeatic IFRS has many standards derived from actual transactions

interestglobal Access to IFRS helps students integrate with global accounting trends

interestclear The IFRS standards are clearer and easier to understand than the VAS standards

interestopt Improve job opportunities

Method

mtdmaterial Available material for studying IFRS

mtdsources Adequate learning material resources at school

mtdself Being easy for Self-learning

mtdcurr Integrated IFRS in accounting curriculum

mtdfieldtrip Field trip at enterprises applying IFRS

Knowledge

knldgeIAS15 IAS 15: Assets held for sale and discontinuous operation

knldgeIAS20 IAS 20: Accounting for Government Grants and Disclosure of Government

Assistance

knldgeIAS36 IAS 36: Impairment of Assets

knldgeIFRS12 IFRS 12: Disclosure of Interests in Other Entities - IFRS

knldgeIFRS13 IFRS 13: Fair value measurement

Expectations

expsal Better jobs and a lucrative salary

expintearcerti Pursue professionalism with international certifications: ACCA, Chartered

accountancy

expworkinter Probably work in many countries

expreadyknldge Preparation of a knowledge ready base when Vietnam has changes in accounting

standards

expupdate Easily update international accounting knowledge and information

expcomm Easily partake in international accounting community

3.2.6 Data analysis method

To apply the SPSS model in assessing the influence of factors on the acquisition ofIFRS, the steps to conduct the analysis include:

Step 1: Evaluate the scale's reliability using Cronbach's Alpha coefficient The alpha

coefficient was developed by Cronbach (1951) to measure the internal consistency ofvariables in the same group Accordingly, Cronbach's Alpha coefficient can be used toevaluate the scale's reliability and remove inappropriate variables from the model.Variables with a total correlation of less than 0.3 are excluded, and the scale is acceptedwhen Cronbach's Alpha coefficient is more significant than 0.6

Step 2: Exploratory factor analysis (EFA) to evaluate the convergence value and

discriminant value of each variable in the factor groups; and is a statistical analysismethod used to reduce a set of many interdependent observed variables into a smaller set

of variables (called factors) so that they are significant but still contains most of the

information content of the initial set of variables (Hair et al., 1998)

Considering the suitability of factor analysis: Comparing KMO values

If the KMO value is between 0.5 and 1, then factor analysis is appropriate for thedata

If the KMO value is less than 0.5, the factor analysis is not suitable for the data Determining the number of factors: Eigenvalue > 1, the summary of information ismeaningful

Factor loading greater than or equal to 0.5, these unqualified variables will beexcluded

Step 3: Analyze the correlation between the variables to see if there is a linear

relationship between the independent and dependent variables

Step 4: Analyze linear regression to know the impact of the independent variables

on the dependent variable and the level of impact of each variable

The correlation of the dependent variable “Program” with the independentvariables

Hypothesis:

Cronbach's Alpha coefficient is 0.780 greater than 0.6 and the correlation coefficient

of the total variable (Corrected Item - Total Correlation) of the variables is 0.597,respectively; 0.568; 0.628; 0.696 and 0.319 are both 0.3 big Conclusion, scale is reliable.Knowledge

Table 6 Results of Cronbach's alpha testing with Knownledge factor

Case Processing Summary

Cronbach's Alpha Cronbach's Alpha

Based on Standardized Items

Corrected Total Correlation

Item-Squared Multiple Correlation

Cronbach's Alpha

if Item Deleted Available material for