Research Proposal: The roadmap to IFRS implementation: Obstacles and challenges- The Case of India
IFRS is acronym form of the International Financial Reporting Standard that defines the common rules and regulations regarding the presentation of the financial statements of the company. IFRS is developed by the International Accounting Standard Board.
It includes the guidelines on ways how companies should maintain its financial accounts and statements. The main aim of IFRS is to developed trust among the shareholders in the financial market on the companies’ accounting system. Shareholders provide the funds to the company so it is essential for the companies to maintain their trust by following the accurate and fair accounting activities.
IFRS is developed with the aim of bringing the consistency in the accounting policies and practices of the companies and improve the financial knowledge of the investors in the market. It is also helpful in the decision making activities of the key person of a company.
IFRS is committed to set the standards in world’s financial market related to fostering trust, growth and long-term financial stability. The consideration towards the standard of the IFRS is helpful for the companies because it ensures the investors that company is presenting the financial statement with transparency and fairness so these invest more in company (Brown, 2011).
But, the main research problem is that it is not as simple to implement the concept of the IFRS. In the implementation of the concept of the IFRS, Indian faces several challenges and obstacles such as lack of the technical skills and knowledge. In the context of this, Jermakowicz (2004) determined that implementation of the IFRS is a challenging aspect for the developing countries.
In this, some challenges are common that are found in the each country. In this some challenges are complexity of the standards, lack of technical skills and knowledge in standards, fair value issues, cost, regulation, and etc. On the other hand, the views of Amanamah, (2017) explained that culture issue is common challenge in the country that influence the implementation of the IFRS standard.
In this way, this report also identifies roadmap to IFRS implementation as identifying obstacles and challenges in the context of India.
The main purpose of this research report is to identify the roadmap to International Financial Reporting Standard (IFRS) implementation: Obstacles and Challenges- the case of India.
This research report will also provide the knowledge and understanding of the concepts and theories to the IFRS implementation. It will also determine the essential of IFRS in the business and it also increases the performance of the business. It also determines the IFRS standards contribute to the efficiency of economic by assisting investors to recognize obstacles and challenges across the world, therefore developing capital allocation.
This research report will also present the IFRS as also major essential to regulators in India. This research report is also useful for the upcoming researcher and reader to increase their understanding and knowledge about the implementation of IFRS in business (Daske, 2019).
This research report will also help the business to analyze the importance and need of IFRS in the business. It will also determine the obstacles and challenges of IFRS in the business and it will help to develop the best financial strategy in the business.
- 1 does accepting International Financial Reporting Standard lead to an important diversity in financial reporting quality?
- 2 does accept International Financial Reporting Standard decrease information irregularity, enhanced comparability’s, and enhances stakeholders/investors earnings on investment?
The main aim of this research study is to identify the roadmap to International Financial Reporting Standard (IFRS) implementation: Obstacles and Challenges- the case of India.
- To determine the importance of the International Financial Reporting Standard (IFRS) in the organization.
- To recognize the factors of influencing the obstacle and challenges of IFRS in the organization.
- To provide suggestion to implement the IFRS in the organization.
In this research report, it provides the potential impact of IFRS in the business. Accepting of IFRS will encourage in preparation of dependable and transparent and presentation of financial statement.
This standard will facilitate the comparability’s of financial information that will increase investor’s confidences in the business. IRFS will provide easy access to the international capital market and at less cost.
Accepting of International Financial Reporting Standard by Indian companies is going to be extremely challenging but at the same time can also be rewarding. Indian companies are potential to gather important advantages from accepting of IFRS (Irina, 2019).
The Indians companies experience highlight various perceived advantages as an outcome of accepting of International Financial Reporting Standard in their business. Moreover, various, auditors, investors, and preparers of financial statement were in agreement that International Financial Reporting Standard developed
the financial statements quality and that International Financial Reporting Standard implementation was a positive improvement for financial reporting. The accepting of International Financial Reporting Standard is expecting to outcomes in better financial reporting quality due to consistent accounting principles application and development in financial statements reliabilities.
It will lead to enhanced confidence and trust placed by analysts, investors, and another stakeholder in a business. The requirements for changes in some regulations and laws leading financial accounting and reporting in India. In the context of accounting standards, there are regulatory and legal needs that determine the way in that financial information is presented or reported in the financial statement.
There is a lack of sufficient professional with realistic IFRS adaptation experience and thus several organizations will have to rely on external auditors and advisers. It is increased by a lack of awareness among Indians companies as thus project may be analyzed easily as an accounting and project management problems that can be left to the auditors and finance functions.
It must note that IFRS conversions will include changes of fundamental to an entity system of financial reporting and process (Armstrong, 2019). It will need a detailed understanding and knowledge of the standards and the capability to consider their impacts on company performance and transactions measures. Moreover, the process of conversion will require an implant and disseminates IFRS knowledge through the company to make sure its applications on an ongoing basis.
This research study is important in the context of the both institutional and theoretical aspects. The completion of the research study will be helpful for the financial institutional and other firms to successfully adopt the IFRS in the accounting policies by avoiding the obstacles and challenges.
It suggests the way to effectively implement the IFRS standard in the company. At the same time, it also improves the theoretical understanding of the IFRS in the business practices. The completion of this research will be helpful to effectively implement IFRS in the daily business practices.
To conduct this research report, the researcher will adopt a qualitative research strategy to complete this research report effectively. In this report, the researcher will consider qualitative research to develop and improve a practical understanding of this research report problems and issues. It is a scientific method of observation to collect non-numerical data.
It is also primary exploratory research. Qualitative research is used to gain an understanding of basic reasons, motivations, and opinions (Mark, 2019). It provides insights into the issues or assists to improve hypotheses and ideas for potentials qualitative research.
To conduct this research study, the researcher will consider the primary data collection method in order to collect related and accurate data. It is referred to as the information or data that is gathered by the researcher on the first-hand research. Primary data gathering is exclusive for the researcher. The primary data can be gathering through various methods like survey, interview, etc.
In this research study, the research will use primary data to get proper outcomes (Spyros, 2019). The gathering of primary data will be used to collect the opinion and viewpoint of participators. The primary data will gather through the interview with participators. As a result, it is a good method to collect information or data and will be used for this research study.
It is referred to as the procedure of synthesizing and ordering the information’s so as to respond to the research study to test hypothesis and questions. In this report, the selection of suitable methods is important to evaluate the gathered data and information.
To accomplish this research report, the researcher will choose the method of Thematic Analysis to complete this research effectively. Thematic Analysis will be helpful for the researcher in evaluating the gathered data or information that will be measured from the information provided by conducting the interview (Cole, 2017).
It is one of the most common forms of analysis within qualitative research. It emphasizes recording, pinpointing, examining patterns of meaning within data. It is used in qualitative research and focuses on observing themes inside the information or data. It goes beyond easily counting words or phrases in a move and text on to recognizing explicit and implicit ideas inside the information or data.
To complete this research study in a proper way, the entire data or information will be written in own language without influence the actual meaning of the data and information that will alleviate the plagiarism issues or problem.
The researcher will also ensure to the participators that the collected data and information will be exploited for only the purpose of personal and academic data will be not disclosed (Armstrong, 2019). The ethical issue in consideration of the primary research will also be raised that will be improved by making sure the participants that their personal information will not be disclosed that may affect their personal and professional life.
To conduct this research study, the researcher dissertation proposal must consider various key aspects, regardless of the structure. It will consider the introduction, aim, objectives, research question, research methodology, data analysis, discussion, conclusion, and recommendation.
The structure of the research dissertation proposal is depending on the particular requirements of the course (Spyros, 2019). Several courses may identify that the objectives and aim of research be a separate part in the research proposal or that the researcher does not require involving a literature review section.
The introduction section will state the central research question and give background information on the research study as well as relating it contextually to any major problems or issues surrounding it. The aim and objectives section must also involve the aim and objectives of the research study.
Be sure to states what the research study hopes to accomplish and those results predict. The research study may also require to clearly state what the main research objectives are in another word, how the researcher plan to acquire those outcomes and achievements.
The methodology section will break down that resource the research aim to uses for the research study, and what sort of data will gather from it, both qualitative and quantitative. The researcher may also want to involve how they will analyze the information they collect and what if any bias there may be in their selected methods.
The methodology is very essential for the researcher to identify the research method, data collection, data analysis, and ethical consideration (Irina, 2019). The discussion will provide the researcher to analysis the interview, survey, etc. where they get the information from the participants.
The conclusion also provides the overall information and guidance of the research study. It will identify the issues of the research study. The recommendation section will provide a recommendation for the research study. Recommendation help to develop and improve the methods and structure of the research study.
Amanamah, R. B. (2017). Benefits and Challenges of International Financial Reporting Standards Adoption in Ghana: Accounts and Business Managers‟ Perspective. International Journal of Accounting and Financial Reporting, 7(2), 178-193.
Armstrong. (2019). IFRS: The impact on Indian corporates . Retrieved from https://economictimes.indiatimes.com/view-point/ifrs-the-impact-on-indian-corporates/articleshow/3204158.cms?from=mdr
Brown, P. (2011). International Financial Reporting Standards: what are the benefits?. Accounting and business research, 41(3), 269-285.
Cole, A. P. (2017). Secondary data analysis: techniques for comparing interventions and their limitations. Current opinion in urology. 27(4), 354-359.
Daske. (2019). International Financial Reporting Standards. Retrieved from https://cleartax.in/s/ifrs
Irina. (2019). Measuring the Effects of IFRS Adoption on Accounting Quality. Retrieved from https://www.sciencedirect.com/science/article/pii/S2212567115014355
Jermakowicz, E. K. (2004). Effects of adoption of international financial reporting standards in Belgium: the evidence from BEL-20 companies. Accounting in Europe, 1(1), 51-70.
Mark. (2019). Structure of a Research. Retrieved from https://undergradresearch.dasa.ncsu.edu/publications/ink-ncstate-urj-submissions/structure-of-a-research-paper/
Spyros. (2019). RESEARCH METHODOLOGY: Data collection method and Research tools. Retrieved from https://www.researchgate.net/publication/270956555_CHAPTER_3_-_RESEARCH_METHODOLOGY_Data_collection_method_and_Research_tools