A Case study on RH Amar Assignment PDF
Added on 2021-02-19
22 Pages8527 Words72 Views
Business DevelopmentFinanceProfessional DevelopmentData Science and Big DataHigher EducationPhilosophyEconomics
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Business ProjectContentsTITLE..............................................................................................................................................2Chapter 1: INTRODUCTION..........................................................................................................2CHAPTER 2: LITERATURE REVIEW.........................................................................................4CHAPTER 3: RESEARCH METHODOLOGY.............................................................................9CHAPTER 4: DATA ANALYSIS................................................................................................11ConclusionYOU SHOULD LOOK SPECIFICALLY AT YOUR 2 OBJECTIVES HERE, USETHE NUMBERS AND REFLECT WHETHER YOU ARE CONCLUDING ABOUT THESAME THING...............................................................................................................................19REFERENCES..............................................................................................................................211
TITLE“Impact of international accounting standards on small business development”. A Case study onRH Amar.Chapter 1: INTRODUCTIONOverview of researchIn accounting world, companies have to apply specific guidelines and principle in order to prepareessential statements and authentic reports that are known as International accounting standard. Theseare further replaced by international accounting standard board (IASB) into IFRS international financialreporting standard (Beaumont, 2015). The concept of IAS was first developed in 1973 by IASC with themain purpose to compare companies in different part of world, raise transparency and believe in reportsand improve foster international trade and investment. In recent time as economy is becoming moreinternational and global thus business activities of companies are also expanding. Therefore, they needfor globally accepted framework is greater which help in proper preparation of financial report andrecords. These reports must be consistency, comparable, reliable and transparent at global and domesticlevel so that meaningful decision are made for improvement. Each kind of organisation either small,medium or big require accounting standard so that companies would be able to present financialstatements and promote business al global market. Background of researchRH Amar is one of the best and growing food and grocery distributor and importer in UK. There arearound 68 employees selling around 1200 products and dealing with 40 brands. Company have effectivemarketing and distribution channels that use to provide desired food to respective customer acrossdifferent part of UK (About RH Amar, 2019). The company is a full-service distributor and importer,substance skills and expertise in marketing, brand management, sales, logistics, category management,IT support, food technology and much more. Company use to represent some most popular UK brandsthat basically includes Del Monte, Starbucks, Nando’s, Schwartz, Kikkoman, Crespo, Mutti, Kuhne. It alsodeal in The Original Waffle Company brands which is Cooks&Co, Mary Berry’s. Rationale of ResearchIt is observed that work of research is depended on impact of International accounting standard on smallbusinesses, thus it is necessary to reduce any error or gap in literature review which enable in making ofproper and described plans to conduct research. This particular work in related with defining the actualand entire influence of international accounting standard on the business of small-medium sizecompanies (Brooks and Oikonomou, 2018).Research AimAs concerned to particulate business project the primary aim must be authentic, clear, meaningful andappropriate and which help in disclosing the suitable results to the topic. The main aim of this research isImpact of international accounting standards on small business development, a case study on RH Amar2
ObjectiveIt is understood that the objective of investigation must be reliable, clear, related and specific to topic sothat meaningful outcome can be ascertained. The certain objective related to the basic aim of businessproject is as follows: Analyse the concept of international accounting standards.To assess and understand the current business environment of small businesses.Evaluate the negative as well positive impact of international accounting standards on smallbusiness development. Research QuestionsThe main role of researcher is to define the question related to the particular topic selected forresearch (Brusca and Martínez, 2016). These question might be abbreviated, clear, related to topic sothat answer can be made as per the requirement. In research study all the specific question are relatedwith existent aims and objective. The crucial questions are stated below: 1.What is the main concept of international accounting standards?2.Evaluate the actual and current situation of small businesses in present time?3.Critically elaborate the negative and positive impact of IAS on functioning small businessdevelopment and growth?3
CHAPTER 2: LITERATURE REVIEWThe process associated with rational analysis and appropriate evaluation of sensitive data,supported by credible sources that help decide any lack of basic knowledge and infrastructure. It helps toevaluate the appropriate knowledge which also helps to increase the study topic's best appropriate output(Cleary and Quinn, 2016). The analysis of literature also helps to generate a more in-depth knowledge ofthe particular subject through appropriate papers, published journals, academic paper, etc. This segmentis considered to be the most important part of the study and is linked to the development of the greatestthoughts and ideas that could give a quick knowledge of the corresponding research. A literature review isalso described in a specific topic region as information published and in a defined vulnerable region withina defined period of time. Data was collected through sources such as books, magazines, articles,scholarly papers, papers in this chapter. In general term, it is defined as the detailed, analyses summaryof the active evidence in context to specific topic area of research. Analyse the concept of international accounting standards.According to Robin Jarvis, 2017, regulations for preparing and presenting the financialstatements that were first developed by International Accounting Standards Committee (IASC) in 1973. Inthe recent time, the international accounting standard board create accounting standard that wereaccepted all over the world which are known as IFRS (IFRS’ Impact on SMEs, 2017). There are differenttypes of IAS standard that were issued for the purpose of making reports more authentic and accurate sothat they can easily describe the overall image of business. Some common International accountingstandard are IAS1 that are related with presenting of financial statements that was issued in 2007, IAS 2which was relevant to recording of inventories which was published in 2005, IAS 3 that relates toconsolidation of financial statements, IAS 4 which shows depreciation accounting and many more. EveryStandard have its own importance in context to any business either small or big as it help internalmanager to sort information in meaningful manner and present to external stakeholder which makes easyfor them to take respective investment decision. In recent time, around 2001 the board IASB developed the independent standard IRFS havingthe main objective:To establish single high quality, reliable, high quality, understandable and globally accepted IFRSstandard that are depended upon clear articulated framework. These norms should involvestrong-quality, consistent and similar data in annual reports and other accounting to assistshareholders, other stakeholders in investment markets as well as other business informationparticipants in making economic choices.Promoting the implementation and strict implementation of these norms. To meet the strategies of (1) and (2), take into account the requirements of a variety of sizes andkinds of organisations in a variety of economic configurations, as applicable.Promoting and facilitating the implementation by the Board of IFRS standards and interpretations,through the happening of international accounting standard and IFRS regulation. 4
In accounting terms, the IFRS is accounting standard that help to organise and report financial data andrecently it is one of the most necessary accounting standard that is being followed in approx 120 nations.It generally allows companies to post annual results and define the financial status and strength byapplying the basic concept and rules in order to reduce any fraudulent of manipulation so it makes easyfor external stakeholder to compare and contrast financial outcome for that specific year (Fang, 2015).Companies mainly implement IFRS for reporting their financial outcome anywhere in the world except fewcountries such as the United states as GAAP is the only accounting framework that is used in US. IFRSprimarily cover huge array such as: Presentation of financial statements.Employee benefits.Revenue recognition.Borrowing costs.Income taxes.Investment in subordinate companies.Inventories.Fixed assets.Intangible assets.Leases.Retirement benefit plans.Business combinations.Foreign exchange rates.Operating segments.Recording to consequent events.Industry-specific accounting, like mineral and agriculture resources.The entire concept of IFRS is mainly developed by International accounting standard Board thatuse to work closely with expertise from finance department all around the globe which includes analysts,investor, functionary controller, business leader and responsible accountant that put valuable inputs(Fields, 2016). There are basically 6 steps of IFRS development these are as follows: Fixing the agenda and accounting criteria. Effective planning for project.Establishing and familiarising exact discussion documents with the aim to define publicconsultation.Creating and publishing the disclosure draft involving public consequent.Publishing and development standard that ease to produce statements.Defining a procedure after publishing an IFRS. To understand the current conditions of small businesses.5
In the opinion of Hillary, 2017, small business is define as the small scale independent business entitythat are mainly controlled, managed and funded by its proprietor. These kind of companies mainly havesmall or limited staff, assets and resources as compare with other companies. In this type of businesscompany owner have to bear or contribute maximum contribution, efforts or capital as they do not havelarge number of employee and as a result they have to bear all risk and are entitled to profit. In context toRH Amar, as the company is small in size and willing to expand business in different part of world, thus itis crucial for internal manager to implement best accounting standard that are accepted at internationallevel (Fischer-Pauzenberger and Schwaiger, 2017). This would help interested parties to gain theactual position and financial strength of company during an accounting year and allows them to makeinvestment to attain the desired profit. Small business are generally have both qualitative and quantitative aspect or criteria such as qualitativecriteria says that proprietor makes important decision own their own as they are not accountable toanyone and these business have smaller market share at domestic level. On the other side, quantitativevariables are used to define the actual strength of employee, salaries and wages, legal framework,valuation of fixed assets, share of ownership which is held by management. Small companies areorganizations operated separately that necessitate very little equity, less labour force less or noequipment. These companies are perfectly suited for small-scale operations to represent a local peopleand provide earnings to the shareholders of the company. There are some of the crucial effectivecharacteristic of small companies that are listed below: Limited investment: Capital is provided by an person or a tiny set of people in a tiny company.According to a survey related to low-scale units it is ascertained the majority of tiny businesses are run assole ownership and relationship.Owner management: These kinds of companies are identified with its owner those are the manager and risk taker. They havethe main work to motivate the employees and make them comfortable to put maximum efforts so thatdesired goals can be accomplished (Gitman, Juchau and Flanagan, 2015).Labour Intensive:For the most part, small companies are manpower-intensive. Different kinds of small business dependmainly for their operating on labour. Small businesses ' main nature will be more physical job participationthan academic job. The absence of equipment helps handle the activities of the staff manually.Community Based: Mainly small company like RH Amar, have the main purpose of satisfying the demands and requirementof customer living in local community. The management use strategies and target smaller demographicareas so that they can easily make out the actual demand and requirement of clients and produced goodsand services accordantly. As respective company is currently target demographically little area Shoestring Budget: 6
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