Investigation of IFRS Implementation for Company X Accounting Firm

This research project investigates the potential benefits of implementing International Financial Reporting Standards (IFRS) for Company X, an accounting firm operating in a developing nation. The study addresses the research problem of declining revenues and increased competition from multinational corporations (MNCs) that already utilize IFRS. The research aims to determine how IFRS adoption can enhance Company X's competitiveness and generate revenue beyond the local market, particularly in the context of the Solomon Islands, where the accounting profession is still developing. The project employs a qualitative research design, utilizing survey interviews with experts in IFRS to explore the potential advantages of IFRS implementation, such as improved quality, increased comparability, and access to capital. Ethical considerations, including informed consent, confidentiality, and privacy, are carefully addressed in the research design. The findings are expected to provide insights into how Company X can leverage IFRS to improve its market position and financial performance.

Investigation of how implementation of
International Financial Reporting Standards
(IFRS) can help Company X
Student Name
Student Number

Industry Partner
The research investigates company X.
Company X is an accounting firm.
It is also established, though in a developing
nation.
Owned by an Australian and Canadian.
Provides raft of services such as: accounting,
taxation, IT consulting and data processing.

Industry Partner
By extension Company X has membership with
ISIA.
The company has a workforce of 22 people.
 14 professional staff
 5 support staff
 Two managers
 One director

Research problem
• Company X is not operating optimally.
• Solomon Islands offers it a small market.
• Demand for accounting and audit services
have dipped.
• The Islands does not have established law on
accounting.
• Accountants Act of 2010 was passed.

Research problem
• Institute of Solomon Islands Accountants is
not yet developed.
• This would mean enforcement of the
Accountants Act hasn’t gained momentum.
• IFRS has not been ratified in Solomon Islands.
• Thus, accounting profession is not yet
developed in the Islands.

Research problem
• Businesses still depend on Companies Act for
accounting and auditing.
• Some use AAS (applicable accounting standards)
• The Act and AAS are used for audit and
accounting.
• Company X operates on low revenues.
• It has lost revenues to international accounting
and audit firms.

Research Aim
 In overview, Company X is losing revenues to
MNCs such as Deloitte, PWC, EY, and KPMG.
These MNCs use IFRS.
Hence, this research aims to:
 Establish how adoption of IFRS can help
Company X to be competitive like MNCs such
as PWC.

Literature review
• Ahalik, Murwaningsari, Mayangsari, and Aryati
(2019, p.51) established:
• IFRS implementation index does not influence
net income.
• IFRS implementation has a negative
relationship with corporate values.
This implies that IFRS implementation does
not affect company values.

Literature review
• Research by Pandian, and Sharma (2018, p.
176) reveals IFRS adoption comes with
benefits such as:
Improved company image
Easy comparison of financial reports
Better quality.

Literature review
Ball (2016, p. 545) asserts that IFRS was adopted
by 100 nations.
It’s adoption was in the spirit of globalization and
desire to have global accounting standards.
High quality was the assured expectation
following its adoption.
Company X can implement it to offer accounting
and audit services beyond Solomon Islands.

Conceptual Map
Increased
comparability
Access to
capital from
external
sources
Improved quality
Adoption of International Financial Reporting St

Research Questions
 Will Company X guarantee high quality in its
accounting and audit services if it
implements IFRS?
 How will IFRS make Company X competitive
and generate revenues beyond Solomon
Islands?