Question #1
a. Search from Google and Choose at least 5 research articles on accounting in which you are
interested and would like to investigate. You might have observed that every article starts with an
Abstract, explain in your words what is an abstract and how does it help other researchers.
Answer:
An abstract is brief summary that describes the content of the larger work. In other terms, an abstract
is strong statement that introduces the reader to what is contained in the larger work. The components of an
abstract differ according to discipline. For instance, an abstract in a scientific or social science work may
entail the purpose, scope, and findings while an abstract of a humanities work may entail the background,
thesis as well as conclusion of the entire work. Note that an abstract is different from a review and does not
evaluate the work being abstracted. Although an abstract entails keywords found in the larger work, it is an
original piece of writing rather than an excerpted statement. An abstract helps other researchers to evaluate
the relevance of the entire work and thus understand its importance to their projects. Moreover, other
researchers can use the abstract to identify the existing gap in a particular research.
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b. Write the title and author of each article and summarize the finding of each author in all the 5
articles and write a critical comment on them.
Answer:
List of the chosen articles
i.
National adoption of international accounting standards: An institutional perspective by Judge and
Pinsker
ii.
Accounting standards and international portfolio holdings by Yu and Wahid
iii.
Incentives or standards: What determines accounting quality changes around IFRS adoption? By
Christensen, Lee, Walker and Zeng
iv.
Convergence of accounting standards and foreign direct investment by Chen, Ding, Xu
v.
Accounting and stock market effects of international accounting standards adoption in an emerging
economy by Elbannan.
An article entitled, “National adoption of international accounting standards: An institutional
perspective” by Judge, Li and Pinsker (2010) aimed at exploring the importance of reliable and accurate
financial information. In their study they discovered that after controlling the growth of GDP as well as
capitalization of the market, foreign aids, education level and penetration of imports attained within a
national economy are all determined by the level to which International Financial Reporting Standards
(IFRS) are embraced in 132 developing, transitional and developed countries.
In the article entitled, “Accounting standards and international portfolio holdings,” Yu and Wahid
focus on answering the question whether difference in states’ accounting standards impacts international
investment decisions. In their research they discovered that investors incline to underestimate investees
holding significant accounting distance (Yu & Wahid, 2014). Moreover, the article indicates that the
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propensity to invest little in investees with significant accounting distance deteriorates when accounting
distance is minimized either from investee’s IFRS implementation or IFRS application in the investor’s
nation.
“Incentives or standards: What determines accounting quality changes around IFRS adoption?” is an
article by Christensen et al. that aims on examining the impacts of managerial financial reporting programs
on the quality changes of accounting around application of IFRS (Christensen et al., 2015). The findings
presented by these researchers uncovered that reporting programs engulfs accounting standards in
determining the quality of accounting. The bottom line is that deliberate implementation of IFRS develops
the quality of accounting.
“Convergence of accounting standards and foreign direct investment” is an article by Chen, Ding
and Xu (2014) that explores standards of accounting as a basic element of the institutional infrastructure of
an area and theorizes that the union of domestic and IFRS enhances FDI because it minimizes the costs
associated with processing information for global investors.
In his article named, “Accounting and stock market effects of international accounting standards
adoption in an emerging economy,” Elbannan explores the effects of the compulsory implementation of the
1997 and 2006 Egyptian accounting standards (EAS) on achieving firm valuation and quality (Elbannan,
2011). The research discovered that the firm valuation is adversely impacted by EAS.
These articles revolve around the importance and functionality of IFRS in accounting processes
across developing, transitional and developed countries. In this case, the findings presented in these articles
will serve as a guide to accountants.
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c. Develop one Question/ Topic of your own based on all the comment you made from the summary
above.
Answer:
What are major challenges hindering full application of International Financial Reporting Standards (IFRS)
in developing, transitional and developed countries?
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Question #2
Research proposals includes:
1.
2.
3.
4.
5.
6.
7.
Title
Abstract
Issues
Objectives
Literature
Method
Benefits
Write down a research proposal on the question developed in the 1st Question.
Answer:
Title: Challenges hindering full application of IFRS in developing, transitional and developed nations
Abstract: This research majors on exploring the major challenges hindering full adoption of IFRS across
countries of all kinds of economies. The research will depend on reviewing articles on previous researches
on similar and related topic.
Issues: Many countries have been falling short of fully implementing IFRS without understanding the exact
reasons for this failure.
Objectives: To identify the challenges of fully implementing IFRS and propose possible remedies.
Literature: Most of the research conducted on the accounting topics pinpoints that failure to implement
IFRS results to poor quality of firm valuation.
Method: The research will rely on reviewing articles on previous studies on accounting topics.
Benefits: The research will shade light on the challenges facing the process of implementing IFRS
accordingly.
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Question #3
Data collection depends upon the choice of research method adopted like:
1. The research questions
2. Data access
3. What the researcher wants to do
Develop at least 10 questions on the objectives you created in your proposal to collect data/ Survey.
Answer:
1) Do you understand basics of general accounting?
2) Do you have knowledge of accounting principles?
3) How knowledgeable are you regarding IFRS?
4) Do you understand the benefits and limitations of implementing IFRS?
5) What challenges do you think you can encounter when applying IFRS?
6) Do you think that the cost of implementing IFRS surpasses the financial ability of the firm?
7) Can you suggest different standards that might meet the needs of the users?
8) What are the major obstacles of implementing IFRS in different firms?
9) Do you think that the current accounting software supports IFRS?
10) Do you believe accountants, as well as accounting students are equipped with basics of IFRS?
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Question #4
The trade-off between reliability and construct validity has been referred to between internal/external
validity. Explain them.
Answer:
Internal validity is described as the level of confidence that the spontaneous relationship being
examined is trustworthy and free from interference of other aspects or variables. On the other hand, external
validity is the level to which findings from a research can be generalized or applied to other groups, events
or situations.
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References
Chen, C. J., Ding, Y., & Xu, B. (2014). Convergence of accounting standards and foreign direct
investment. The International Journal of Accounting, 49(1), 53-86.
Christensen, H. B., Lee, E., Walker, M., & Zeng, C. (2015). Incentives or standards: What determines
accounting quality changes around IFRS adoption?. European Accounting Review, 24(1), 31-61.
Elbannan, M. A. (2011). Accounting and stock market effects of international accounting standards
adoption in an emerging economy. Review of Quantitative Finance and Accounting, 36(2), 207-245.
Judge, W., Li, S., & Pinsker, R. (2010). National adoption of international accounting standards: An
institutional perspective. Corporate Governance: An International Review, 18(3), 161-174.
Yu, G., & Wahid, A. S. (2014). Accounting standards and international portfolio holdings. The Accounting
Review, 89(5), 1895-1930.
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1st Question
Differentiate between Quantitative vs. Qualitative research. Give examples from the articles you
have referred in assignment 1.
2nd Question
a. From the articles you referred in assignment 1 explain one of the quantitative analysis used
by the any author.
b.
Explain, what is ANOVA and Regression Analysis and its use in research.
3rd Question
Bring out the steps in Conducting Experiments and their concerned design
4th Question
Explain interview methods and the areas of concern in conducting them
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