Resolution for applying fair value accounting according to international standards at Vietnamese commercial banks

Abstract

Fair value (FV) accounting in banks is really necessary because the object of banking accounting is mainly financial instruments whose values fluctuate according to market prices. Banks need to disclose information about the accounting objects on the principle of fair value instead of the original price principle to accurately reflect their true value, ensuring that the information is provided in an honest and reasonable manner, more transparently, to help people use information more effectively. Along with the trend of international accounting integration, the application of standardized accounting according to international standards at Vietnamese commercial banks is an inevitable trend. Based on a research overview of factors affecting the application of FV accounting, the article builds research models, actual surveys, and through that statistical analysis results have identified 5
groups of factors affects the application of FV accounting of Vietnamese commercial banks, including: perceptions of the benefits and disadvantages of FV, legal environment, professional environment, business environment and economic environment. This is the basis for proposing solutions to apply international standard FV accounting at Vietnamese commercial banks in the coming time.