Application of International Public Sector Accounting Standards in Vietnam in Current Conditions

The objective of improving the state accounting system is to build a state accounting system based on a single and complete database which is applied uniformly across all public authorities and agencies from central to local. Such an accounting system must ensure a reliable and smooth flow of information among all the entities that take part in the preparation, allocation, execution, and finalization of the state budget. In order to improve the quality of financial information, to harmonize, and to develop accounting profession globally, the trend of international economic integration requires the standardization of accounting legislative framework among countries and first of all, the harmonization and unification of the preparation, presentation, and disclosure of financial information. Financial statements of each business in the private sector and financial statements of the government in the public sector in different countries should be transparent and presented in accordance with the accounting standards and principles and in line with international practices so that the financial information will be able to be compared and evaluated. Therefore, financial statements of each entity in the public sector and the consolidated financial statements of public sector entities issued by the government in different countries must be prepared and presented in a unified form to suit the international public sector accounting standards. Accordingly, with the application of the interview method in research, the main objective of this article is to focus on searching for the bases and consideration for the application of international public sector accounting standards in Vietnam in current conditions. This article consists of eight sections： （1） what are international public sector accounting standards？ （2） accounting entities of the public sector; （3） the limitations of current public sector accounting in Vietnam; （4） financial information to meet the requirements of state management and to comply with international practices; （5） the advantages of applying international public sector accounting standards in Vietnam; （6） the difficulties and challenges of applying international public sector accounting standards in Vietnam; （7） learning experiences from other countries; and （8） conclusion.     

Accounting for goodwill under FRS 136： Case of Malaysian plantation companies

The introduction of FRS （financial reporting standards） 136 to Malaysian PLC＇s （public limited company） in 2006 indirectly formalized accounting for purchased goodwill for the first time. Based on a sample of 2006 annual reports of 10 Main Board companies from plantation sector, the study finds the level of desired disclosure has yet to be met. Whilst the intention of the standard is noble, actual practice for first time reporting entities indicate that Malaysian PLC＇s and their auditors have far to go before they can meet the expectation set by FRS 136 in particular and International Financial Reporting Standards in general.     

Issues on Public Sector Accounting Reform in Jordan

This study reviews recent articles discussing the benefits of International Public Sector Accounting Standards(IPSAS)implementation in reforming public sector accounting,specifically in developing countries.These benefits are among others better transparency,accountability,and decision making in public sector financial transactions.The purpose of this study is to examine the role of IPSAS in addressing some critical financial issues,including financial aids,budget deficit,taxes,and corruption,which may hinder the progress of Jordanian public sector and the country’s economic growth.This study concludes that IPSAS has an effective role in addressing these thorny issues and its implementation would therefore allow the Jordanian public sector to reach its development goals.The unique contribution of this study is that it enriches the body of knowledge regarding the benefits of IPSAS implementation in a more holistic manner and in a new context,Jordan.     

From Consolidation to Segment Reporting in Local Government： Accountability Needs,Accounting Standards,and the Effect on Decision-Makers

Consolidated Financial Statements （CFSs） in the public sector represent useful financial tools to improve transparency and accountability toward internal and external users. This aggregate view is only a part of the information needed in order to give politicians, managers, employees, financial institutions, rating agencies, and citizens a whole view of a local government＇s financial performance. It emerges the need to have segment information, covering specific policy areas for which it is appropriate to separately report financial and non-financial information. This paper, after having discussed the need for accountability and decision-making in a theoretical framework, gives account of a pilot project realized by the municipality of Reggio Emilia, which introduced CFSs and segment reporting. The empirical study is based on an action research as a methodological approach to solving practical problems. Finally, the paper also offers some practical suggestions to contribute to the applicability of the segment reporting in the public sector.     

Development of China＇s Accounting Standards： Its Establishment and Development Trend

1. The Needs for Accounting Standards Development In 1980s, it was the searching stage for accounting standards. It was recognized that accounting standards cannot be isolated from business environment. China＇s accounting standards are basically constituted by the elements of recognition, measurement and presentation of accounting information as required by Ministry of Finance. Before 1978, accounting system reform was only carried out between complexity and briefness, so reporting formats and accounting framework were retained. Thereafter, the 3^rd plenary session of the 14th Communist Party of China National Congress concluded the economic reform in socialist market economy. Central government put forward a state policy on openness and mainland economic enlivenment. One of the major priorities was to attract foreign capitals and allowed the formation of China-foreign joint ventures. At that moment, China＇s accounting system was based on a single ownership methodology, which was a state-monopolized revenue and expenditure. As foreign transactions were not properly recorded in the financial statements, the information integrity was doubtful in reflecting the true figures of inputs and outputs. In addition, foreign investors could not even understand the reporting systems. It led to confusion that Ministry of Finance＇s approval on the shareholding transaction was unfair. As usual in western accounting standards, foreign shareholding should be regarded as equity and exhibited in balance sheet, which should be audited by independent professional accountants. As a result, the Chinese accounting system was alleged as opaque and required to reform in accordance with international accounting conventions. Otherwise, the foreign shareholding was unable to be translated into the investors＇ home countries.     

Revelation from the assurance engagements of the accounting industry in Japan

It is generally accepted that because of conflicts of interest, the public accounting firms provide auditing services combined with consulting services to their clients may be one of the main causes of financial reporting fraud. Separating the consulting services from the auditing services becomes a general trend at present. It is indispensable to determine the boundary of auditing and consulting, and simultaneously regulating the internal control within their respective fields. On the premise of transparency of financial information, the auditing service has been separated in some countries, in order to improve the credibility of accounting information. Relevant measures include measures conducted by the management officials to ensure the quality of financial report, enhancement of the responsibilities of the auditors, and the standard formulated by the government to evaluate the auditing process and auditing opinion. Statement on conceptual framework related to assurance engagement, proposed by the Japanese government （below called ＂statement proposed by the Japanese government for short）, which verifies the credibility of financial information, is an example of the above-mentioned trend. Compared with Japan, China has different regulations and laws in relation to the assurance engagement.     

Financial Market of Montenegro： Evidence of Crisis and Beyond

The financial sector has played a small role in the restructuring of the manufacturing sector in transition economies, and in some cases, financial liberalization may have undermined real sector development. However, stable and stimulating business environment is crucial for economic development. The aim of this paper is to show the main changes that have been implemented in Montenegro so far, and guidelines for changes in the financial market in Montenegro, for further harmonization in accordance with the requirements of European Union （EU） accession. Also, the ability of governments of transition economies to enforce contracts and to achieve fiscal and monetary responsibility is of great importance for economic and financial development. By adopting the new Constitution of Montenegro, in the field of regulation of the financial system, there have been significant changes, recognizing the Central Bank as an institution responsible for financial stability. The authors will give a review of the actual state of the financial market in Montenegro, as well as recommendations for further changes in order to create a favorable climate for entrepreneurship and to strengthen the overall financial system.     

Impact of International Financial Reporting Standards （IFRS） Adoption on Key Financial Ratios＂ The Case of the Czech Republic

This contribution analyzes the impact of new International Financial Reporting Standards （IFRS） reporting rules on financial ratios prepared in the Czech companies. Using a sample of 16 Czech firms, we attempt to measure the scope and size of the differences in the selected set of financial ratios as calculated with data reported according to the traditional Czech accounting standards （CAS） and under the IFRS provisions. Our study discovers that there are important differences resulting from the two reporting formats. Our research comes to a conclusion that translation of Czech statements to IFRS may cause changes in the values of financial indicators without relationship to the real change in the firms＇ value, performance, and stability. Even though the findings were not statistically significant, the indicative results of our measurements disclosed an important fact that the transition to IFRS could cause deterioration of key indicators and thereby could impact on the overall rating of companies. One needs to be cautious with generalization due to the small sample size.     

Evaluation of the Impact of International Accounting Standards Board （IASB） Framework Concepts on the Public Accounting Profession

Accounting profession has, in recent times, been regulated mainly by the private accounting standard setters mainly the International Accounting Standards Board （IASB）, which has taken a center stage and redefined the accounting information systems beyond the knowledge discernment of the average users and stakeholders. Public accounting profession＇s overreliance on the ever-changing IASB conceptual frameworks and their subsequent publications International Financial Reporting Standards （IFRS） standards has strongly compromised the ethics and objectivity of the profession, especially the accounting fundamental qualitative characteristics of the fair representation. Public accountants are, by ethics, required to issue an accurate, independent, and objective opinion of the financial state of the reporting entity. A review of various literatures from the IASB and the related bodies including independent auditors was employed during the evaluation process so as to minimize bias and evaluate objectively. The results revealed that currently, the IASB conceptual frameworks and IFRS contain inconsistent and opposing objectives including an inconclusive definition of elements and measurement basis mainly of profit and loss transactions and other comprehensive income, and hence the public accounting profession has been ethically challenged and compromised. Financial reporting is now premised on estimates, judgments, and models as opposed to a definitive measurement in accounting. A recommendation of further study on the IASB fundamental qualitative characteristics of decision usefulness should be pursued objectively.     

The effectiveness of internal audit in Malaysian public sector

Internal audit in Malaysian public and private sector organizations underwent a steady organic growth since gaining a foothold in the management process in the 1970s. The management of the Malaysian public sector is continuously maturing in facilitating foreign input in national development, echoing similar advances expounded by the internal audit units of private sector organizations. The main difference being the public sector addresses the interest of a much wider group of stakeholders. Rapid development in infrastructures and industries positioned Malaysia on the fringes of globalization and the world market. This enlarges the crucial role of internal auditing to ensure transparency, integrity, quality and improved service delivery; among myriad positive aims, remain the end point of any process area. This study explored the significance of internal auditing in the Malaysian public sector, and its subsequent extent and influence in public sector hierarchy and decision making. Data was collected from responses to a questionnaire distributed to head of internal auditors, internal auditors and other staff of internal audit departments from various categories of public sector departments and agencies in Malaysia. The study concluded that the internal audit function in the public sector in Malaysia is curtailed by understaffing and hampered by inadequate support from top management while, the auditors seldom extend their full cooperation. The auditors themselves lack appropriate knowledge and training on effective auditing approaches. The negative perception accorded to internal audit led to inaction by management on recommended remedies which only serve to nullify the positive contribution internal audit potentially holds to elevate the service delivery quality of the public sector.     

Financial statements in less developed countries： What do preparers demand？

This study reports on an empirical investigation of the characteristics, attitudes, and beliefs of preparers of external financial reports in a less developed country. The basic research instrument consisted of a questionnaire in two parts： the first addressing attitudes of professional accountants toward annual financial reports generally; the second, more specifically measuring the importance of the information items to preparers. Our results suggest that the independent auditor is the most influential group in decision-making processes. As in many developed countries, the auditor＇s report and the regulatory framework are considered to have a major influence on financial reporting practices. Preparers believe that a lack of knowledge of external users＇ needs and lack of reporting standards and accepted accounting principles are the main concerns with corporate financial reports in Iran. The results showed that the balance sheet, auditors＇ report, and income statement in that order are the three most important parts of the annual reports.     

Effectiveness of Budgetary Entities

This paper acquaints readers with the practice of effectiveness evaluation in the public sector. The purpose of this paper is to study performance measurement according to the changes in public sector reform by focusing on performance-based budgeting in Russia. This paper suggests that the construction process of performance measurement should be aligned with outputs and outcomes of budget policy. The main research materials for this paper are based on data from a survey and follow-up interviews of budgetary managers and accountants. The survey result sets priorities and weighted some indicators to the measurement of effectiveness in the public sector. The data of this study were not large, but the study led to understanding how effectiveness is seen by budgetary managers and how measurement systems should be structured. Texts and contents from different sources such as financial annual reports and budgetary entities＇ websites provided insightful and interesting findings.     

英文摘要

Study on the Change of Influence on Accounting Information Value of Comprehensive Income Reporting Mode
Comprehensive income reporting mode changes will affect the use of fair value. The comprehensive income reporting system based on the mode change, introduced the concept of comprehensive income and its presentation of the impact on the financial report, the financial report on the quality of the status of accounting information. Aiming at the lack of reporting effect on valuation of comprehensive income information and empirieal research, this paper reported from the analysis of comprehensive income to improve investor perception, improve investor valuations and strengthen financial supervision of the constructed model, value and benefits related to model validation policy change effect. Results show that the increase in the income statement, profit and loss information will enhance the value of accounling information, can significantly improve the transparency of financial reports and significantly reduce investors valuation cost, provides the reference for the formulation of accounting standards and improve the quality of accounting information.     

Corporate Internet Disclosure in the Arabian Gulf： An Empirical Examination of Determinants and Attributes

This paper investigates and reports on the extent and nature of corporate internet disclosure and the determinants of internet financial disclosure （IFD） by companies listed in three Gulf Corporation Council （GCC） countries. This paper uses data from 207 listed companies in Muscat Securities Market （MSM）, Dubai Financial Market （DFM）, and Qatar Exchange （QE）. Binary logistic regression analysis is used to examine the determinants of IFD. Kruskal-Wallis test is used to examine the differences in disclosure characteristics among the three countries. The results of this study reveal that firm size is the major factor influencing intemet financial reporting in the GCC. The results reveal that the three countries differ significantly in all the disclosure attributes with the exception of the existence of email link. This paper extends the stream of research that confirms the widespread use of internet in disclosing financial information. The results are consistent with previous literature that corporate size is a major determinant of internet financial reporting. This paper provides insights into corporate internet disclosure in the GCC that will benefit all stakeholders with an interest in corporate reporting in this important region of the world.     

On the informationization of accounting information in China： The perspective of accounting information systems and its regulatory framework in the USA

The informationization of accounting information systems has brought many improvements to those systems. This paper highlights some of those significant advances in the informationization of accounting information systems in China. As China has become a major industrial power in the international economy, further improvements for these information systems are critical to the continued successes of China. To additionally improve these systems, China can draw upon the systems from other world economic leaders. With its fully developed capital markets, the United States offers development experience for the external reporting components of a fully integrated information system. This paper discusses a typical integrated information system in the United States and addresses the regulatory milestones that were instrumental in the development of those external components of accounting information systems. Recommendations are presented for improving informationization of systems in China based on U.S. systems＇ responses to those milestones.     

Corporate Reporting： An Integrated Approach to Legitimacy Claims

With the increasing pressure on companies to engage in corporate social responsibility （CSR）, it is paramount for businesses and organizations to gain social legitimacy through building trust and credibility towards their stakeholders. Corporate reporting is a major tool whereby they can demonstrate their transparency and their will to contribute to society. However, reporting is often addressed as a narrow and restricted discipline based on specific areas of communication like financial and CSR communication, which potentially can lead to ＂disconnected reporting＂. The aim of this paper is to address reporting within a framework of corporate communication, introducing the concept of corporate reporting as ＂an issue of integration＂ and to discuss the opportunities and challenges of corporate reporting as a driver for gaining social legitimacy. Recent research in corporate reporting and the development of standards by distinguished reporting agencies （e.g., Klynveld Peat Marwick Goerdeler （KPMG）, A4S, PricewaterhouseCoopers （PwC）） seem to support this position, arguing that integrated reporting is ＂the way forward＂. Accordingly, the authors conclude that there is a need to include a broader range of aspects in the corporate reporting literature applying a strategic integrated approach by which corporate reporting may more explicitly help businesses and organizations gain social legitimacy towards their internal and external stakeholders.     

The Opportunity for Convergence of SYSCOHADA towards IFRS Standards:An Effect of Coercitive and Mimetic Isomorphism

The last few years have been marked by the increase in power of IFRS international accounting standards.From the full or partial adoption to the gradual convergence,many countries have displayed a strong preference for these standards.Meanwhile,the implementation of International Financial Reporting Standards(IFRS standard)in the context of developing countries is not trivial.We are witnessing an unprecedented clash between the authors who support the interest of these standards for developing countries,and those who conversely demonstrate that these norms are not well adapted to the context of those countries.Falling within this problematic,this thesis analyses the issues and determinants of the convergence of the Organisation pour l’Harmonisation en Afrique du Droit des Affaires(OHADA)accounting system towards IFRS international accounting standards in view of the reforms introduced by the last revision.From a sample of 10 companies,among which two local firms,two international firms,three publicly traded companies,and three not listed other companies,we show that the current convergence towards international accounting standards follows an effect of coercitive and mimetic isomorphism.In so doing,the timely implementation of these standards in the context of Cameroon is contingent with a number of structural and environmental factors that call their pertinence into question.     

A Comparative Study about Internal Auditing Approach between Germany and China

While internal audit is one of the most important functions and procedures for internal control of the firms＇ normal operations from the perspective of financial terms, different countries, due to their stages of economic developments （developed countries VS. developing countries）, unique governmental regulations, and different societal and cultural traditions, have implemented different internal audit systems and approaches. This paper describes a comparative study exploring some key differences between the internal audit system in China and its counterpart in Germany---from the following five important aspects： the origin and development of internal audit, the structure of internal audit system, the relationship between firms＇ internal audit and the government agency, the responsibility and accountability of internal audit, and the quality of internal auditors. Based on the comparative analysis, four suggestions are made for future improvement on the internal audit system in China, along with managerial discussions.     

The impact of financial sector development on the economic growth of emerging countries： An empirical study for E-7 countries

Globalization, financial liberalization, financial integration, financial sector, and economic growth have been significant issues for many researchers. The studies have investigated the effects of the above issues to the economic growth of countries both theoretically and empirically. Since there has been conducted an enormous body of work, each of them may be grouped and studied separately. This paper focuses on the impact of financial sector development to economic growth and empirically studies the potential effect on the emerging E-7 countries, consisting of Brazil, China, India, Indonesia, Mexico, the Russian Federation, and Turkey. The study employs panel regression methodology and the data set for modeling Gross Domestic Product （GDP） comprises annual data over 2001-2007, using basic variables which resemble financial sector development, namely market capitalization of listed companies （stock market capitalization）, bank capital to asset ratio, stocks traded, total debt service, foreign direct investments, portfolio investments, real interest rates, and claims on private sector. The analysis indicates that the GDP may be modeled using the above stated macroeconomic variables with considerably high explanatory power, except for the real interest rates and bank capital to asset ratios.     

Empirical Research on the Influence of the Differences between PRC GAAP and IAS/IFRS on Chinese Listed Companies

With the support and promotion of many international organizations, and quick development of accounting standards globalization, the high quality global accounting standards led by IASB are striding towards us at an astonishing speed. After continuous reform, China has made remarkable performance towards accounting standards globalization. From the analysis of the past six years （1999-2004）, the authors find out that although there are systematic differences between PRC GAAP and IAS/IFRS and the differences have significant impact on financial disclosures of Chinese listed companies, the influences have weakened. This means that the differences between PRC GAAP and IAS/IFRS have narrowed and that PRC GAAP is converging towards IAS/IFRS.