From totalitarianism to capitalism - the case of IFRS adoption in Vietnam

摘要

We investigate the strategic process of contextualisation of International Financial Reporting Standards (IFRS) in an economy transitioning from totalitarianism to capitalism - Vietnam - paying attention to tensions between actors involved in the process. This study employs the framework suggested by Puxty et al. to analyse the behaviour of actors of the State, Market, and Profession. We find that Market's needs trigger the IFRS contextualisation, which is institutionalised by the state. IFRS-oriented rules undergo 'reality tests' and are tailored to fit the local context. Despite active interactions between the actors, the dominant role of the State results in some tensions.