Management Accounting : PDF

Running head: MANAGEMENT ACCOUNTING
Challenges in financial reporting of the listed company
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Chapter 1: Introduction....................................................................................................................3
1.1 Background of the Study.......................................................................................................3
1.2 Rationale of the Study...........................................................................................................4
1.3 Research Objectives...............................................................................................................4
1.4 Research Questions................................................................................................................4
Chapter 2: Literature Review...........................................................................................................6
2.1 Introduction............................................................................................................................6
2.2 Accounting Standards for the implementation of financial reporting...................................6
2.3 Challenges faced in financial reporting of the listed companies...........................................7
2.4 Assumptions of the challenges related to financial reporting................................................9
2.4 Summary of the literature....................................................................................................10
Chapter 3: Research Methodology................................................................................................11
3.1 Introduction..........................................................................................................................11
3.2 Research Philosophy............................................................................................................11
3.3 Research Approach..............................................................................................................11
3.4 Research Design..................................................................................................................12
3.5 Data Collection Process.......................................................................................................12
Chapter 4: Data Analysis and Discussion......................................................................................13
4.1 Introduction..........................................................................................................................13

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4.2 Thematic Analysis...............................................................................................................13
4.2.1 Overview of the International Financial Standards......................................................13
4.2.2 Benefits of Financial Reporting....................................................................................14
4.2.3 Disadvantages of financial reporting............................................................................15
Chapter 5: Conclusion, Recommendation and Future Work.........................................................17
5.1 Conclusion...........................................................................................................................17
5.2 Addressing the Objectives...................................................................................................18
5.3 Recommendation.................................................................................................................19
5.4 Future Work.........................................................................................................................19
Reference List................................................................................................................................20
Bibliography..................................................................................................................................25

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Chapter 1: Introduction
1.1 Background of the Study
In the current time period, it has become increasingly important for the companies to
create a bigger and a better working environment with the help of which the companies would be
able to amplify their business and accordingly maintain competitive edge. It is seen that it has
become increasingly general for the shareholders to undertake investment in the companies in
order to mitigate the level of investment risk with the help of the divergence of the investment
(Steyn, 2014). Hence, the capability to gain knowledge and thereafter compare the financial
reports with the help of which the financial reports and the statements among the organisations in
various markets is significant for the current day capital investors as it is seen that the capital
market has been expanding with the introduction of globalisation.
Rensburg, & Botha (2014) cited that as the countries incorporate IFRS and other
standards for the purpose of financial reporting, the conjunction of the practices of accounting
has become a facet that is irrevocable for the globalisation of the business. In spite of the
incorporation of the IFRS and other standards all over the world, there have been development of
several issues and challenges from several nations and these have been disclosed by the
organizations that are operating in the market. These issues and the challenges have been the
interface among the nation based factors and the incorporation of foreign standards of
accounting.

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1.2 Rationale of the Study
The topic that is associated to the threats that are seen in the process of financial reporting
of the companies that are listed will predict how the organizations would be able to reduce and
minimise the threats that develops from the international and national frameworks of reporting.
This will be helpful to the companies that are listed in order to create an effective
harmonisation in the international and national reporting model (Busch et al., 2016). This would
even assist the accountants and the auditors to create a learning in the core and the essential
elements of the international disclosure on the ascertained approach.
1.3 Research Objectives
The objectives of the research associates with the development of the aspects and
elements that leads to the challenges in financial reporting and accordingly actions and steps can
be taken with the help of which the countries and the organizations are able to make use of the
accounting standards in a much effective manner and thereafter construct their financial reports
that are ideal for them. The objectives that are related to this topic has been explained as follows:
 Recognising the core problems that are faced by the listed organizations in the
international and domestic reporting model
 Create synchronisation in the international and national reporting of the financial
reporting and statements
 Construct efficient and precise financial statement model for the listed organizations
1.4 Research Questions
The research questions that are associated to this topic has been explained as follows:

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Q1. How does synchronisation maintained in the international and domestic documentation of
the financial reports?
Q2. What are the essential issues faced by the companies while documenting of the financial
reports on the international level?
Q3. How financial statement differ from the international reporting styles?