Researching and proposing solutions to apply valuation model in fixed assets accounting in non-financial enterprises in Vietnam to provide useful information to users of information.
MINISTRY OF EDUCATION AND TRAINING THUONGMAI UNIVERSITY - NGUYEN HONG NGA RESEARCH ON APPLYING VALUATION MODELS IN FIXED ASSETS ACCOUNTING IN NON-FINANCIAL ENTERPRISES IN VIETNAM Major : Accounting Code : 934.03.01 SUMMARY OF ECONOMIC DOCTORAL THESIS Ha Noi - 2021 The work was completed at: Thuongmai University Science instructor: Assoc Prof Dr Le Thi Thanh Hai Assoc Prof Dr Ha Thi Thuy Van Review 1: Review 2: Review 3: Thesis will be protected before the thesis review board meeting at …………………………………………………………………………………… The dissertation can be found at: National Library Thuongmai University library INTRODUCTON Rationale of the topic research The thesis ensures the systematization and novelty of research under both theoretical and practical perspective by the grounds as follows: Firstly, from theoretical perspective: the thesis is based on a new approach and classifies the research problem Specifically, the thesis will study other valuation models other than traditional cost model, clarify and determine the difference between valuation model and measurement basis Currently, the research and application of valuation models is towards two approaches: providing useful information to users in a prudent approach; provide complete and relevant information to the user Accordingly, the measurement and initial recognition of fixed asset accounting is based on historical cost, after the initial recognition, it is possible to choose historical cost or fair value The historical cost is currently the measurement basis, so in order to apply valuation models, it is necessary to continue to study the use of fair value after the initial recognition Secondly, from practical perspective: to study the application of the meaningful valuation model to the enactment of legal regulations in Vietnam in the convergence relationship with international accounting standards In order to increase the degree of harmony between the regulations of Vietnamese technical expertise and international, it is necessary to apply fair value for measurement after initial recognition However, up to now, fair value studies in Vietnam are quite modest, especially there has not been any in-depth study on the application of fair value to measurement after initial recognition of fixed assets Therefore, this thesis is designed to evaluate the applicability of fair value to the measurement after initial recognition in fixed asset accounting to provide orientations in the application of valuation model Research on the application of valuation model in accounting of fixed assets in non-financial enterprises has implications for the application in enterprises at the practical level Because in the accounting and auditing strategy of Vietnam until 2030, the Government has set the requirements for businesses to continue to access and apply international financial reporting standards Based on that application roadmap, enterprises need to choose the application of valuation model in fixed assets accounting to both suit the characteristics of their production and business activities and economic development conditions Vietnam's political, social, cultural, ensures the timeliness and appropriateness of information to interested subjects From the above reasons, it can be seen that the research on the application of valuation models is an urgent issue in the current period Therefore, I have chosen the topic "Research on applying valuation models in fixed asset accounting in non-financial enterprises in Vietnam" as the research topic of the thesis Research purpose and mission * Research purposes: Researching and proposing solutions to apply valuation model in fixed assets accounting in non-financial enterprises in Vietnam to provide useful information to users of information * Research mission: Systematizing and clarifying the theoretical basis of valuation models and accounting of fixed assets according to valuation models Analyzing and evaluating the current situation of applying valuation models in Vietnam's fixed assets accounting regulations, surveying and evaluating the situation of applying valuation models in fixed asset accounting in non-financial enterprises main; at the same time assessing the impact of the factors on the application of fair value in fixed assets accounting - the foundation to determine the influence of the factors on the applicability of valuation models in fixed assets accounting in non-financial enterprises in Vietnam Proposing solutions and recommendations to apply valuation models in fixed assets accounting in non-financial enterprises in Vietnam in the period to 2025 and vision to 2030 Research subjects and scope * Subjects of research: The research object of the thesis is the application of valuation models in fixed asset accounting and the factors affecting the application of fair value in fixed assets accounting, thereby determining the factors affecting the application of valuation models in fixed asset accounting in non-financial enterprises * Research scope - Regarding the research content: The study of applying valuation models in fixed assets accounting belongs to the research scope in terms of financial accounting, not in terms of management accounting; for the presentation of information on the separate financial statements, not for the presentation of information on the consolidated financial statements, Research on tangible fixed assets and intangible fixed assets, not for finance lease fixed assets, long term assets held for sale Therefore, the dissertation will study the factors affecting the application of fair value in fixed assets accounting, because this is considered as a factor, as an important link to apply valuation models in fixed assets accounting - About the research object: collecting data at large-scale manufacturing enterprises (over 200 billion VND), including listed and unlisted enterprises - Regarding the research period: the thesis collects survey data in processing and manufacturing enterprises in Vietnam during the period from 2016 to 2020 and suggested solutions for the period up to 2025, vision to 2030 Scientific and practical significance + Regarding theoretical: researching and adding theoretical issues about valuation models in the accounting and fixed assets accounting according to each valuation model, researching experiences of countries in the world and drawing lessons for Vietnam about valuation models suitable for fixed asset accounting At the same time, the thesis also builds a research model, adjusts, develops and supplements a scale of factors to measure the impact on the application of fair value in fixed asset accounting in enterprises + Regarding practical: The thesis uses appropriate research methods including data collection methods and data analysis and processing methods to evaluate the current situation of applying valuation models in fixed assets accounting, assessing the impact level of factors to apply the fair value in accounting of fixed assets in non-financial enterprises The thesis has pointed out the achieved results, limitations and identified subjective and objective reasons for applying valuation models in fixed assets accounting Since then, the thesis gives practical recommendations and ensures convergence with international accounting standards Structure of the thesis: The thesis content is structured into chapters, including Chapter 1: Overview of research situation Chapter 2: Theoretical basis of applying valuation models in fixed assets accounting in enterprises Chapter 3: Research methods Chapter 4: Application of valuation models in fixed assets accounting in nonfinancial enterprises in Vietnam Chapter 5: Orientation, opinion and recommendation in order to apply valuation models in fixed asset accounting in non-financial enterprises in Vietnam CHAPTER 1: OVERVIEW OF RESEARCH SITUATION 1.1 Research on measurement basis and valuation models in accounting 1.1.1 Research on measurement bases in accounting Barlev & Haddad (2003) in the study “Fair value accounting and the management of the firm” said that in order to be measurable in accounting, it is necessary to define the measuring basis The accounting's development has shown that there are basic measuring bases including: historical cost, general cost, current cost, output price and fair value Accordingly, the measuring bases used today are only historical cost and fair value Currently, fair value with useful characteristics when providing information is becoming the basis of measurement that countries around the world are aiming to apply to accounting objects when presenting information on the financial statements (Nur Barizah Abu Bakar & Julia Mohd Said, 2007) It can be seen that the above studies are theoretical studies on measurement bases that have not been deployed in experimental studies to be able to confirm the necessity of applying fair value in accounting 1.1.2 Research on valuation models in accounting The book "Some topics on accounting theory" by Mai Ngoc Anh et al (2014) has explained in detail the valuation model and its components This is considered a work with very clear research direction on valuation models, but there is a lack of empirical research evidence to apply valuation model in practice In another study on "The reassessment model after initial recognition for the elements of the financial statements" Mai Ngoc Anh (2011b) said that the revaluation model has not been applied in the Vietnamese accounting system and can only be applied when Vietnam has a complete asset market system, operating under a complete and transparent market mechanism However, these are theoretical studies of the authors, this application requires specific experimental research 1.2 Research on the viewpoint of applying valuation model in fixed asset accounting Oyadongha James & Ogoun Stanley (2013) in the study on “Revaluation Accounting and Decision Usefulness of Accounting Ratios” also said that in order to overcome the limitations of the cost model, it is necessary to apply the reevaluation model and conduct reassessment of fixed assets according to the real estate price because it will ensure appropriate information and accurately describe the real value of assets in the enterprise In the qualitative research of Talnagiova Viktoria & Cerna Lubica (2011) on “Measurement of assets in financial statements of an industrial company”, the author shows that after initial recognition, enterprises can choose between the cost model and revaluation model The impact of deferred corporate income tax on revaluation of fixed assets under fair value is recognized under IAS 12 – Income tax Erlend Kvaal (2005), when doing empirical research on “Topics in accounting for impairment of fixed assets” in some countries in Europe, analyzed a number of explanatory variables related to depreciation of fixed assets including: scale, accounting returns, accounting conservative and management change It is possible to summarize articles, research works that clearly research direction is to apply the cost model and revaluation model for fixed assets accounting in enterprises In addition, there is a lack of specific analytical studies, whether or not to apply valuation models in Vietnam, what basis to apply valuation models, if applicable, the conditions are required Therefore, the author of the thesis realizes that this is a research gap for the author to continue studying the applicability of valuation models in fixed assets accounting in Vietnam 1.3 Research on applicability of valuation models in fixed asset accounting * Research on the situation of fair value application in the current Vietnamese accounting system In Le Hoang Phuc's study (2012) on "Current situation and orientation to use fair value in the Vietnamese accounting system", the author used qualitative research and showed the fair value and using fair value in accounting are scattered in accounting standards, patchy, lack of systematic nature; There is no official and unified guidance on measuring methods, and determining fair values in accounting The author of the thesis realizes that this research direction should be inherited when studying the current situation of applying valuation models to the accounting of fixed assets in the Vietnamese accounting system * Studies on factors affecting the support for fair value application in accounting - About the support to apply fair value in accounting in enterprises Nguyen Ngoc Lan (2017) when researching "Applying fair value in accounting in Vietnamese enterprises", the author approaches based on the perception of enterprise managers to support the application The author of the thesis thinks that it is necessary to inherit the research direction of Nguyen Ngoc Lan, to evaluate the possibility of applying the problem of practice in terms of awareness and voluntary application from the enterprise managers, helping the implementation of the application of solving problem solving effectively, avoiding the implementation of a countermeasure - Research on perceptions of benefits when applying fair value in accounting in enterprises In the quantitative studies of Muller et al (2011) on “Mandatory fair value accounting and information asymmetry”, the author showed that the impact of perceptions of benefits when applying integrated learning is quite high (beta coefficient is 2,326) The author of the thesis realizes that it is necessary to inherit the above research to make a consensus or reject the above point of view - Research on perceptions of disadvantages when applying fair value in accounting in enterprises In quantitative research, Laux, C., & Leuz, C (2009) showed that the unfavorable perception when applying fair value is a positive effect with the application of fair value (beta number is 1,589) On the contrary, research by Nguyen Ngoc Lan (2017) concludes that perceptions of fair values have opposite effects with the dependent variable, the beta coefficient is (-1.032) The author of the thesis realizes that it is necessary to continue to study further and clarify more clearly in the research to clarify the above conflicting views - Study of perceptions of coercive pressure and code compliance for fair value The author Nguyen Ngoc Lan (2017) also concludes that enterprise managers' perception of coercive pressure, imitation mechanism and compliance pressure on the dependent variable are positive effects The author of the thesis realizes that it is necessary to inherit it in order to continue researching and make a consensus or reject the above point of view - The study of perceptions is complex and costly to apply fair value Le Vu Ngoc Thanh (2017) has drawn the conclusion that the cost of measurement of the roadmap is perceived to be high but has no impact on the application of fair values On the contrary, the results of quantitative research by Nguyen Ngoc Lan (2017) showed opposite results Thus, the author of the thesis is therefore aware that it is necessary to clarify more clearly in his research to conclude agree or reject the above views - Study the challenge of the environment when applying fair value Tran Van Tung et al (2016) in the study "Evaluation of factors affecting the application of fair value in accounting in Vietnamese enterprises" Through research, the authors have shown that the factors have negative impacts on the application of fair values in accounting in enterprises The author of the thesis realizes that it is necessary to inherit the above studies for specific research and make a consensus or reject the above point of view 1.4 Identify research gaps and questions From the problems raised above, the author of the dissertation still exists some gaps that need to be studied as follows: - Research to clarify the difference between the measurement basis and valuation model, clarifying the application of valuation model in the fixed assets accounting on the basis of prudent approach and on the basis of providing appropriate information - Researching the current situation of applying the price calculation model in Vietnam's fixed assets accounting regulations, thereby making a comparison of valuation models application in accounting of fixed assets between Vietnamese and international accounting regulations - Conducting empirical research on applying valuation models in fixed asset accounting in non-financial enterprises in Vietnam, studying the factors affecting the application of fair value in accounting of fixed assets, evaluating and giving recommendations for applying valuation model in the accounting of fixed assets * Research question Question 1: What is the difference between a base measurement and valuation model How does fixed assets accounting follow valuation models in regulations How countries in the world have applied valuation model in fixed asset accounting, what lessons can be learned for Vietnam? Question 2: In reality, how to apply the valuation models in Vietnam's accounting regulations and in non-financial enterprises in Vietnam What factors affect the application of fair value in fixed asset accounting? Question 3: The application of valuation models in accounting of fixed assets in non-financial enterprises in Vietnam should be done on the basis of a prudent approach or on the basis of providing appropriate information What solutions need to be taken to apply valuation models in fixed asset accounting to provide useful information to stakeholders? CHAPTER 2: THEORETICAL BASIS OF APPLYING VALUATION MODELS IN FIXED ASSETS ACCOUNTING IN ENTERPRISES 2.1 Overview of fixed assets in the business 2.1.1 The concept of fixed assets in the business Fixed assets are assets controlled by the enterprise, have a physical form or no physical form, have great value, can be reliably determined and used for a long time not for sale and certainly bring future economic benefits to businesses 2.1.2 Classification of fixed assets According to the manifestation form, fixed assets in enterprises are divided into two types of tangible fixed assets and intangible fixed assets By use purpose, fixed assets include fixed assets used for business purposes; Fixed assets are used for welfare, security and defense purposes; Fixed assets awaiting resolution such as fixed assets in dispute awaiting resolution, fixed assets received for protection or custody of other subjects According to the use situation, fixed assets include fixed assets in use; Unused fixed assets; Unused fixed assets awaiting liquidation According to ownership, fixed assets include both owned and leased fixed assets 2.1.3 Characteristics of fixed assets in enterprises Firstly, the monitoring of physical and value management will help avoid the phenomenon of loss or not being used, causing wastefulness leading to a decrease in profit in the period of the enterprise; Secondly, choosing the appropriate depreciation method of fixed assets will reasonably evaluate the level of depreciation to recover the invested value of the enterprise; Thirdly, information about changes in the fair value of fixed assets should be reflected in order to provide appropriate information to users 2.1.4 Request for management, request to provide information of fixed assets * Requires management of fixed assets in the business Firstly, to conduct a reasonable classification to manage and provide accurate information on the existing situation of fixed assets in enterprises; Secondly, must firmly grasp the use of fixed assets to analyze and assess the capacity of fixed assets in the production and business process; Thirdly, a scientific and reasonable method of depreciation of fixed assets must be built in the process of using fixed assets; Fourthly, it is necessary to monitor and determine the value of fixed assets in the following stages: formation stage, usage stage, disposal and disposal stage * Requesting to provide information of fixed assets to users For investors, information reflected on fixed assets on financial statements is important information to help them assess the level of risks and benefits as a basis for investment decisions; For banks and credit institutions, enterprises must prove their financial capacity to repay loans when they are due; For state management agencies, accounting information on fixed assets helps these agencies to check whether the enterprise is correct, sufficiently and accurately calculated or not 2.2 Overview of valuation models in accounting 2.2.1 Valuation model and its elements in accounting Valuation model is characterized by factors including: Assumptions of the valuation model: Each valuation model is based on basic assumptions that are suitable with certain economic, political and social conditions Measurement basis in valuation model: the basis for calculating prices is the determination of what factors are included in the value of the accounting object Application of a price basis to measure the value of a price object upon initial recognition, after initial recognition: Application of a price basis to measure the value of a price object when making the initial recognition and after initial recognition, it is necessary to have appropriate process-based pricing techniques to calculate and determine the value of the objects in different cases Recognizing the effect of price calculation on financial statements: This is the aspect showing the close relationship between the price calculation method and the fundamental issues of accounting, especially related to the recognition of revenue and expenses and business results 2.2.2 Research on valuation models in accounting 2.2.2.1 Cost model The historical cost goal is to provide financial information to help owners / creditors assess the responsibility of using economic resources The theoretical basis for the use of the cost model is the theory of value movement Accordingly, the value of materials, assets and labor shifts into the value of newly created goods Accounting under the cost model aims to preserve financial capital, that is, the amount earned after the initial monetary capital has been preserved The base price model is based on two basic assumptions that are continuous activity and a stable currency In the cost model, the accountant uses the cost-based basis for initial recognition and after the initial recognition The cost model is a traditional valuation model throughout the history of accounting with the advantage of ensuring the objectivity and reliability of information However, accounting under the cost model based on the assumption of continuous operation is not realistic because there is no enterprise that is an indeterminate activity in the future, businesses will sometimes have to stop working 2.2.2.2 General cost model The general cost accounting is formed from the point of view of preserving financial capital, in which the accounting data should be adjusted to ensure the purchasing power of currency at different reporting time is stable The general cost model uses the cost basis for the initial measurement and recognition After initial recognition, the accountant uses price indexes such as consumer price (CPI) or commodity and service price indexes as the basis for the adjustment The general cost accounting developed during the period of increasing inflation in the 1960s-1970s, however up to now, these regulations have all expired 2.2.2.3 Current cost model The current cost model is based on an unspecified future unit of continuity assumption In addition, accounting under current cost model also helps businesses reflect an opportunity cost saved by investing in assets in the past Under current cost model, assets are initially recognized at cost After initial recognition, the assets of the entity are evaluated at current cost Fluctuations in current cost are recorded in operating profit as a factor presented separately on the financial statements In the period 1979-1986, the current cost model clearly revealed the limitations such as the recognition of profits due to an increase in the value of assets held for use, which was criticized as unreasonable, lack of objectivity due to transactions Sale has not happened yet; on the other hand, for used assets that exist in many sectors, then it is difficult to find a working market to determine their prices 2.2.2.4 Output price model Accounting according to the output price model is based on the assumption that enterprises operate continuously and on the premise of effective market Under this model, output prices are determined to measure assets and liabilities initially recognized at market prices The researchers argue that the output price model has the advantage of reflecting the objectivity of having a working market for assets At the same time, the recognition of volatility of long-term assets ensures realism, not based on assumptions However, the output price model has but the limitation is too focused on maximizing the realizable value of the asset, so it is not suitable for forecasting the ability to generate profits in the future, only suitable if the enterprise intends to liquidate assets 2.2.2.5 Fair value model With the goal of meeting the appropriate information needs for decisionmaking, fair value is arguably the most appropriate and the best pricing basis in forecasting future cash flows According to the fair value model, the accountant uses the fair value for initial recognition, and after the initial recognition, accounting reflects the change of fair value on the financial statements However, the integrated learning model also has some certain limitations In the absence of directly observable data on market prices, the measurement of fair value will be unreliable and subjective when it is based on the judgments and assumptions of the reporting entities In addition, the fair value model is popular only for inventories, investment properties, and financial instruments Meanwhile, to reflect the consumption of fixed assets such as factories, equipment workshops and intangible assets, a revaluation model should be applied 2.2.2.6 Revaluation model According to the revaluation model, the accountant uses the historical cost for initial recognition, and after the initial recognition, the accountant uses the fair value to reassess the items on the financial statements In essence, the reevaluation model is a variation of the fair value model to provide better and more complete information to users The fair value model only reflects the change in fair value at the time of revaluation on the financial statements Revaluation model shows current value of amortization and, above all, information changes in asset value, shows consumption of assets during holding and use Therefore, the reassessment model provides more information than the fair value model and reflects the changing value of an asset 11 operations and the application of fair values in fixed assets accounting can therefore satisfy related parties' information needs 2.4.1.3 Institutional theory Based on the basic regime, the reasonable application of value in accounting fixed assets is the lawful result desired by related parties when information fixed assets are presented to financial statements must be consolidated and reliable Based on the initiation of the mechanism, to reasonably apply the value in the accounting fixed assets because the organization wants to arrest successful enforcement Based on the fundamental scope, the fair application of value in accounting of fixed assets is standard in the current international integration trend based on rules developed by specialized accounting organization 2.4.1.4 Theory of Planned Behaviour Based on planned behavioral theory, when managers apply fair values in fixed assets accounting, there is an awareness of the benefits and disadvantages of applying fair values (corresponding to receiving behavioral awareness), there is a need for perceptions of compliance pressures, coercive pressures and imitation mechanisms (corresponding to subjective standards), and there must be perceptions of the impact of the regulatory environment , business, cultural, social, and training issues aimed at making a decision to apply fair value in accounting of fixed assets (corresponding to behavior control perception) 2.4.2 Outline of factors affecting the application of fair values in fixed assets accounting: Research on fair value application in fixed asset accounting has been mentioned in typical works such as Laux & Leuz (2009), Muller et al (2011), Cairn et al (2011) Accordingly, when studying the factors affecting the application of fair value in fixed assets accounting, the author of the thesis realized that these are perceptual factors based on enterprises' perspectives The author of the thesis hypotheses are: H1: Perception of benefits, improving the quality of information presented on financial statements, has a positive impact on the application of fair value in fixed assets accounting H2: Perception of disadvantages when applying the standard of handling has negative impacts on the application of fair value in fixed assets accounting H3: Perception of coercive pressure from credit and lending institutions has a positive impact on the application of fair value in fixed assets accounting H4: Perception of the pressure to comply with regulations of professional accounting organizations has a positive impact on the application of fair value H5: Awareness of the imitation mechanism has a positive impact on the application of fair value in fixed assets accounting H6: Perception of barriers when applying good quality has a negative impact on the application of fair value in fixed assets accounting H7: Perception of the environmental impact of the application of standardized practice has a negative impact on the application of fair value in fixed assets accounting 12 2.4.3 Research model of factors affecting fair value application in fixed assets accounting Perception of benefits, improving the quality of information presented on financial statements Perception of disadvantages (H1) (H2) Perception of coercive pressure from credit and lending institutions (H3) Perception of the pressure to comply with regulations of professional accounting (H4) Awareness of the imitation mechanism The application of fair value in fixed assets accounting (H5) (H6) Perception of barriers (H7) Perception of the environmental impact Figure 2.2: Research model (Source: Author's summation) 2.5 Research on applying valuation models in fixed assets accounting regulations in some countries in the world and lessons with Vietnam: Germany and China are countries with many similarities with Vietnam in an accounting perspective In Germany, for factories, machinery, equipment and intangible assets, the application of fair value is used but at a low level In China, fixed assets are recorded using the cost model In addition, China also prohibits reverse recording of the value of the depreciated fixed asset in order to minimize the incentive to adjust income The following lessons are: - On the basis of measurement: Measuring at fair value should have a specific roadmap, instructions and specific conditions of application - Regarding the initial recognition and after the initial recognition of fixed assets: According to the experience of undeveloped countries on IFRS, Vietnamese enterprises should still choose the original price basis for initial recognition After initial recognition, fixed assets are initially recognized after the historical cost combined with impairment of asset value - Regarding the information presentation on the financial statements: On the notes to the financial statements, there must be a detailed description of the method of determining the fair value, performed by the enterprise or by an independent independent unit of valuation, information on each type of asset depreciated products, money-generating unit, detailing the estimates used to determine the recoverable value of fixed asset 13 CHAPTER 3: RESEARCH METHODS 3.1 Research design 3.1.1 Research process: To implement research purposes and tasks, the author of the dissertation has built a research process and implemented as follows: : Identify Research purpose Research problem review to that Systemize theoretical Primary data - In-depth interview - Investigate businesses Synthesize, analyze, basis and conclude, research detect needs research research synthesize gaps (research scales, build model, and mission questionnaire question) Secondary data -Books, newspapers, magazines, accounting standards - Documents and books at the investigating enterprise suggest solutions and make recommendation Figure 3.1: Research process (Source: Authors self-construction) 3.1.2 Research scale The thesis inherits the observed variables and measures from previous studies combined with interviews to get opinions of experts, scientists, managers on the research scale, thereby forming the Official measurement observed variable for the subject The dependent variable is "applying fair value in accounting of fixed assets" is a binary variable, taking two values of (agree to apply fair value in accounting of fixed assets) and (disagree with applying price fair value in accounting of fixed assets) The observed variables are measured on a 5-level Likert scale, with level being “totally disagree” to level being “totally agree” 3.1.3 Questionnaire development The questionnaire was built to serve the investigation and data collection of the thesis The content of the question in the questionnaires is mainly for the purpose of studying the current situation of applying valuation model in fixed assets accounting from initial recognition, after initial recognition and information presentation on the financial statements If the current application of valuation model in accounting of fixed assets in non-financial enterprises is incomplete, the thesis will continue to study the need to provide complete information about the real value of fixed assets on financial statements for objects of use In addition, the thesis also raises the question to determine the influence of factors on the application of fair value in fixed assets accounting, with the answer designed in the form of a 5-level Likert scale from completely inconsistent fully agree to agree Survey questions aim to determine the level of awareness of enterprises about the benefits, disadvantages, 14 pressures, barriers, environmental impacts on the application of fair values in fixed assets accounting The contents of the questions are designed to be simple, easy to understand and ensure the research objectives 3.2 Data collection methods 3.2.1 Methods of collecting primary data 3.2.1.1 In-depth interview method - Identifying the interviewees are experts with professional qualifications, profound knowledge about accounting standards, regime and practice - The content of the interview revolves around researching the knowledge of objects about the actual accounting status of fixed assets at cost and the real situation of revaluation of fixed assets according to fair values in Vietnamese accounting standards; the real situation of measuring, recording and presenting information about fixed assets on financial statements; studying the needs and necessity of revaluation of fixed assets in a prudent or purposeful approach to provide complete and appropriate information to users; research on the possibility of applying fair values in accounting of fixed assets in the current period At the same time, based on expert survey on determining the factors affecting the application of fair value in fixed asset accounting in non-financial enterprises to determine the appropriateness of research model and reliability of the scales - Modes of conducting interviews, interviews are done through a face-to-face appointment or by phone Time to conduct interview for each appointment for experts is about 25-30 minutes 3.2.1.2 Methods of investigation * Preliminary survey: The thesis performed preliminary research through a sample survey of 90 enterprises The results obtained 74 responses (82.22%) There were 16 invalid responses because there were more than 32% of the responses left blank and the same number of responses over 60% The preliminary investigation is conducted from January 2019 to March 2019 Through the preliminary survey results, it shows that the reliability of the scale of the research variables in the model is evaluated as follows: Total variable correlation coefficient of LI5 is 0.273; BL4 is 0.278