Accrual Accounting System Research Proposal

Running head: ACCRUAL ACCOUNTING SYSTEM
Research Proposal on Accrual Accounting System
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This paper has been prepared in order to have a proper understanding of the accrual accounting
system and how this process can enhance the performance of a business. It is seen that the first
section of the paper will look to understand the background of the topic and accordingly various
aspects on the basis of which this process has enhanced has been discussed. The problem
statement explains the issues and the aspects due to which the research has been undertaken. The
literature review in this manner explains what other researchers have suggested and the various
themes that can be known with the help of which the performance of the process can be
understood. The methodology determines the sort of data that is collected and the process that is
used with the help of which the analysis can be undertaken.

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Table of Contents
Chapter 1: Introduction....................................................................................................................4
1.1 Problem Statement.................................................................................................................5
1.2 Research Aims.......................................................................................................................6
1.3 Research Objectives...............................................................................................................6
Chapter 2: Literature Review...........................................................................................................7
2.1 Summary of the theory as well as progression......................................................................7
2.2 Common themes....................................................................................................................7
2.3 Various themes......................................................................................................................8
2.4 Managerial implications of the articles..................................................................................9
2.5 Limitations...........................................................................................................................10
Chapter 3: Research Methodology................................................................................................12
3.1 Introduction..........................................................................................................................12
3.2 Outline of the Method..........................................................................................................12
3.3 Research Onion....................................................................................................................12
3.4 Research Philosophy............................................................................................................13
3.5 Research Approach..............................................................................................................13
3.6 Research Design..................................................................................................................14
3.7 Data Collection Process.......................................................................................................14
3.8 Sample and Sampling Size..................................................................................................15

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3.9 Data Analysis Plan...............................................................................................................15
Reference List................................................................................................................................16
Appendix........................................................................................................................................19

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Chapter 1: Introduction
With the advent of time there has been an observation that the there have been several
changes in the operational activities of the accounting processes globally. There has been an
acknowledgement globally that there has been a transition in the development of the accounting
process in the public as well as the private institutions and the change has been from accounts
that are cash based towards accruals (Bellanca and Vandernoot 2014). There have been several
researches on public sector accounting and they have clearly admitted with the help of theoretical
and qualitative discussions and the key objective of accrual based accounting has been to provide
a clear, transparent and prominent idea about the non-financial and financial performance of the
public organizations, increased level of accountability and the ability to properly explain the
patrimony. As the public entities grow to become entrepreneurial entities, a procedural and
functional assessment is needed with the help of which incorporation of a managerial process
that is ideal for the business sector is completed (Jesus and Jorge 2016). Accrual accounting
process is a new process and there have been several studies that have explained that this process
enhances the principles like transparency, efficiency, accountability and effectiveness. There has
been an observation that when a comparison is made among the public sector and the private
sector with respect to the incorporation of accrual accounting system, it reveals that there is a
doubt in the efficiency of accrual accounting in making sure that effective financial performance
is maintained as any kind of scandals and failures in the private sector would reveal the same.
The incorporation of an effective performance management process explains direct public
liability. There are various opinions with respect to the benefits of accrual accounting for the
users externally. Some of the researchers address the key role of cash dependent information,

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which has been closed down to the consumption and resources and this is done mostly to the
users who are external (Capalbo et al. 2014). There are other resources who have considered
both external and internal users can gain benefit as an outcome of accrual based accounting,
which is significant for an effective performance management process and this based on a
precise objective, effective performance data and independence to handle properly.
It is seen that accrual accounting system is a new concept and there has been a rise in the
incorporation of this system. This paper would therefore look to assess the concept of accrual
accounting system and the benefits and the usage of this system in the development of the
economy (Hassan 2014). The problem statement of the paper as well as the aims and objectives
will be examined with the help of which the paper would move ahead in order to assess what
other researchers have suggested and the sort of data that would be collected in order to gain
knowledge about the development of accrual accounting system.
1.1 Problem Statement
There has been an observation that the companies have been looking for change with the
advent of time. In this manner the accounting processes have been changing as well. One of the
new accounting processes has been accrual accounting system and the management of the
companies have been reluctant in incorporating this system simply due to the fact that they do
not have what implications this system can have on the financial performance of the businesses.
It is due to this fact that this research has been undertaken in order to have an idea about the
process that is undertaken and the effectiveness of accrual accounting system in the current
business environment.