The Impact of Ethics on Accounting and Financial Reporting

This report delves into the crucial role of ethics in accounting, examining the impact of ethical considerations on financial disclosure and business operations. It highlights the significance of ethical practices in enhancing decision-making, fostering business growth, and maintaining stakeholder trust. The research explores the evolution of accounting concepts, the necessity of integrating ethics into financial reporting, and the importance of modern accounting techniques. The report also analyzes the ethical issues faced by accounting professionals, the requirements of stakeholders, and the role of accounting professionals in financial disclosures. It covers various aspects such as literature review, research methodology, data analysis, and recommendations, emphasizing the need for transparency, accuracy, and adherence to ethical standards in accounting practices. The report also discusses the influence of GAAP, IFRS, and IASB on financial disclosure and the adoption of modern reporting techniques.

Ethics in Accounting

TABLE OF CONTENTS
CHAPTER: 1 INTRODUCTION....................................................................................................3
Background.............................................................................................................................3
Significance of study..............................................................................................................3
Rational...................................................................................................................................3
Research Aims and Objectives...............................................................................................4
Research Questions................................................................................................................4
Dissertation Structure.............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................1
CHAPTER: 3 RESEARCH METHODOLOGY.............................................................................4
Research Approaches.............................................................................................................4
Research Philosophy..............................................................................................................4
Research Design.....................................................................................................................4
Data-collection.......................................................................................................................4
Ethical consideration..............................................................................................................5
Reliability and validity...........................................................................................................5
Research limitations...............................................................................................................5
CHAPTER: 4 DATA ANALYSIS..................................................................................................7
CHAPTER: 5 RECOMMENDATION..........................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

CHAPTER: 1 INTRODUCTION
Topic of the research: Study on changing process of the accounting concepts in current
scenario and necessities of implicating ethics in financial disclosure.
Background
To execute operations in the business as well as have the proper decision making tools
which will help in enhancing the growth of business will be fruitful with the ethics and moral
values are implemented in it. In the present report there has been discussion based on implication
of the ethics in accounting and the helpfulness in terms of determining the goals and objectives.
The research will have critical evaluation over the implication of ethic and the usefulness of such
operations. There will be analysis of data which determines the usage of accounting ethic and the
disclosure of financial data set will be helpful in attaining the objectives of business. Therefore,
the importance of Morden approaches and different ways of reporting methods will help the firm
in terms of enhancing the profitability as well as productivity. The research will be helpful in
terms of analysing the effective reforms in the current scenario as well as the use of such
financial techniques in terms of making the most appropriate business operations.
Significance of study
The significance of making the study is that there has been changes in the current
scenario with respect to the business operations. Therefore, in relation with increasing
competition most of the organisation has mainly focused over presenting the reports which
describes the profitability and they are paying less attention over improving the profitability of
firm (Gong, 2017). This research will help managers in terms of analysing the usefulness of
ethics and morale in the accounting disclosure. Thus, the changes in operations will help in
making proper accounting disclosures.
Rational
The rational behind presenting such reports is to highlight the usefulness and importance
of accounting ethics in the daily business operations. Thus, this research will help in fetching the
informations about such factors which are affecting accounting performance of business.
What: There are the several issues which are being faced by accounting professionals in
these regards which are relevant with the non profitable growth and the unfavourable capital

gathering by the organisation. Thus, in this context the investors have negative image of business
in their mind and thus it affects the capital structure of business.
Why: The reason behind such issues is that people are not aware with the Morden
techniques of presenting the financial disclosures as well as they do not follow the ethics and
manner to prepare such data set. These issues arise due to use of traditional methods and the poor
management within the organisation.
How: The research will help in resolving such issues and present the innovative ways
that will help professionals in gaining the proper knowledge and informations which are relevant
with making disclosure of financials. There can be use of various techniques and business
operations which will be fruitful for the managers in terms of motivating workforce as well as
increasing the level of outputs.
Research Aims and Objectives
To make fruitful research over the current accounting methods and techniques which are
being utilised by organisation to make the adequate improvements in the knowledge and revenue
generation by the firm there will be requirements of analysing the fruitfulness of such researches.
Hence, there will be certain Aims and Objectives on which the research took place such as:
Aims: “To create the awareness towards ethics and moral in accounting techniques as
well as introduce society with the modern techniques”.
Objectives:
 To determine the ethical issues and requirements of the stakeholders.
 To identify the value of ethic and moral in accounting techniques.
 To determine the role of accounting professionals in terms of making financial
disclosures.
 To present the modern ways on which professionals will make accounting disclosure.
Research Questions
 What are the ethical issues and the requirements of stakeholders?
 What are the values of ethics and morale in accounting techniques?
 What are the role of accounting professionals in terms of making financial disclosure?
 What are the modern ways on which professionals will make accounting disclosure?

Dissertation Structure
The research will be based on 5 chapters such as:
Chapter: 1 Introduction
There will be introduction to the issue of the ethical barriers in the accounting techniques
and process of presenting the fruitful disclosure of the financials. It includes the rational and
significance of the research with the various research questions. Therefore, with the help of such
tools the business will become able to make the adequate increment in the operational
Chapter: 2 Literature review
There will be critical analysis over the current accounting techniques and the loopholes in
the operations of such methods (Franklin, 2017). There will be discussion based on the use do
various new and innovative techniques of accounting operations. This critical analysis will help
in gaining the informations which are relevant with the Morden techniques and the benefits of
such research.
Chapter: 3 Research methodology
There will be discussion based on the research types, designs and adequate analysis of the
operations of the business that will be helpful in analysing the methodology of the research. It
will also determine the qualitative advantage of the research and the actions which are going to
be made by researchers in this segmentation.
Chapter: 4 Data analysis
This technique is helpful for the business in terms of analysing the current market
structure as well as make the adequate assumptions over the preferences of the accounting
professionals. In these regards there will be analysis based on the various data analysis
techniques.
Chapter: 5 Conclusion
This chapter will help the managers and the accounting professionals in terms oh having
the adequate advice and suggestions over the use of modern techniques of analysing the financial
data set. Therefore, with the help of such suggestions the professionals will make decisions
which are relevant with the use of such operational activities.

CHAPTER 2: LITERATURE REVIEW
According to (Gerstein and Friedman, 2017), accounting is the job or responsibility of an
individual towards the organisation and the users of such data set to present accurate details and
outcomes. In order to perform such responsibilities there is need to make proper changes in the
business operations. An auditor or accountant in the firm are responsible for having the proper
records of all the transactions, measuring them as well as analysing the outcomes to plan for the
future operations (Roberts, 2016). They are responsible to present the most favourable details
which are theoretical and practical accurate and fettuccine enough over which they will have the
fruitful investments plans. (Ferrentino and et.al., 2016), stated that, there will be use influence of
ethics in the duties performed by them. Therefore, it can be analysed as per the duties performed
by them. They are required to make record of all the transactions such as cash inflows, outflows,
revenue generation, production, purchase ans sales as well as various operational expenditures
(Brands and Lange, 2016). Thus, after having the proper record of all the transaction there is
need of making the accurate auditing of such accounts and the revenue of expenses made during
the period.
There are the several ethics and rules which are to be taught to Accountant, auditors and
relevant accounting professionals in accordance with the (Ahmad and Ahmed, 2017), the
etiquettes are to be taught in adequate manner which will describe the proper presentation of all
the accounts (Sorensen, Miller and Cabe, 2017). These professionals are liable to make the
proper allocation of all the capital resources as well as seek the requirements of funds for the
business operations. Therefore, with the help of such techniques the business will be beneficial in
terms of making the proper analysis of all the resources. The presentation of the financial data
base will be beneficial for firm in terms of attracting the stakeholder to make investments and
analyse the growth of company (Jing, 2017). The disclosure of income statement, financial
position, cash flow statement and the statement for changes in equity helps the users to analyse
the growth, profitability and efficiency of business. In accordance with (Mehta and Moonat,
2017), the income statements reflect the revenue generated by firm over the period with
consideration of all the operational gains and expenses. Therefore, with the help of such analysis
the business will be beneficial in terms of making the proper record of all the transactions
(Arfaoui and et.al., 2016).
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In context with the balance sheet of the company the users will become to analyse the
liabilities, assets and the capital gains of the firm (Kelly, 2017). Thus, if the firm is financially
strong and have the strong capital structure than it can be said that they are having the most
appropriate revenue gathering and the profitable earnings. As per the views of (Sayim and
Usman, 2016), the ethics and rules in the accounting function plays main role in terms of having
the most accurate and appropriate data which helps the organisation in meeting the objectives.
Therefore, it includes services like general accounting, auditing, taxation and management of the
industrial preparations (Marzuki and et.al., 2017). Thus, with the help of analysing the
operational strengthen or weaknesses there will be benefits of having the fruitful disclosure of all
the accounts. Thus, this data set will help the users to analyse the information and the financial
transaction of business. There can be use of such records and industrial operations as well as
make the most adequate and fruitful analysis over the operations of firm. In accordance with
(Hageman and Fisher, 2016), there has been influences of various principles and authorities
which in turn will be helpful for the business to make the improvements in methods of presenting
the adequate disclosure. There are various principles and guidelines are facilitated by GAAP,
IFRS and IASB in context with presenting the universally accepted framework to present the
disclosure of the financials of company (Gerstein, Winter and Hertz, 2016). Therefore, with the
help of these tools the business will be beneficial as to have the capital gains form the
international investors. This will also be fruitful for the foreign investors to analyse the
requirement growth of organisation as well as analyse the returns from such investments
(Mattingly, 2016).
The motive behind such implicating the ethics in the operational activities which is to
present the transparent and easily understandable disclosure of the financial (Engel, 2016). Thus,
with the help of presenting the financial reports in the external market various investors will pay
their valuable attention as well as show their interest in making investment therefore, the use of
such data set will help in making the proper improvements as well as analysing the needs of such
resources. In accordance with the (Thompson and McCoy, 2016), to have the proper funds for
the expansion and operations of business there is need of having the large numbers of investors
so here the managers and the professionals in the firm must plan to make the dividend policies so
the investors will feel save to make investments (Gunz and Thorne, 2017). There is need to adopt
the modern techniques of presenting the reports such as integrated reporting techniques, CSR
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reports etc. Therefore, with the help of such tools the business will be beneficial as to make
effort in environmental sustainability as well as highlights the corporate social responsibilities of
the organisation. As per the view of (Rhame and et.al., 2016), such modern techniques are useful
in terms of creating the brand image as well as enhances the capital generation of firm. It will
also help in improving the environmental conditions as the maximum volume of wastage and the
pollutant will be filtered by the firm. Thus, it creates the healthy environment for the citizens
who are staying there (Brennan, 2016). Thus, in accordance with making the appropriate
improvements in the operations, goodwill and the capital gathering of the firm.
The disclosure of financial data set will help in enhancing the level of production and the
business outputs which are very essential in terms of making the proper improvement as well as
determining the use of capital in each department and piece of work (Sharpe, 2016). Therefore,
the accounting and disclosure of the financial data set will help managers in decision making.
They will be beneficial in terms of planning the budgets and forecast the increase and decrease in
the demands of business (Vosselman, 2016). Therefore, with the help of such analysing the
business will be beneficial in terms of making the adequate increment in the operational
activities as well as make the relevant plans for the business development (Gordon, 2017).
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CHAPTER: 3 RESEARCH METHODOLOGY
Research Approaches
The research is based on the qualitative approaches which is based on the inductive
methods. Therefore, the framework behind the research is to present and adequate observation of
the data set and issues which will present the theoretical outcomes. Therefore, the objective of
such research is that it will help in conducting the observation and the development of
explanations which will facilitate the theories to such approaches. The design will be chosen
because it is the most suitable alternative for the research to be done (Wilson, Strong and
Mooney, 2016). Here, data collection and analysis will be done using well-outlined quantitative
strategies. The first thing to do is to identify the target population then settle on a sample size
that will be used to represent it.
Research Philosophy
The research is base on the positivism as it indulged with various qualitative and sources.
This will be based on various facts and it will be helpful in terms of understanding the main
reasons. Therefore, it can be said that the facts will be beneficial for the adequate informations
and solutions to overcome such obstacles. The target population will therefore be drawn from the
accountants, managers, shareholders, clients, and suppliers. These are the stakeholders who are,
in one way or the other, affected by the accounting processes in an organization. The sampling
technique that will be used is simple random. A sample size of 20 participants will therefore be
used in the study. The sample technique is preferred because it will give each and every
participant an opportunity to participate in the research.
Research Design
To make the study most preferable and fruitful there has been use of experimental data.
Therefore, it will help the researchers to analyse current facts and the factors which are affecting
the operations of business (Júnior and Junior, 2016). The research will be design as to address all
the relevant facts and figures as well as suggest ways to solve problems.
Data-collection
The research is based on the qualitative research which include all the informations
which are collected and analyse on the basis of issues. There will be increment in the
profitability and it helps in decision making. There will be collection of all the relevant data
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which are on the basis of two instruments such as conducting surveys and documentary analysis.
Thus, after making the adequate collection of information the data will be analysed and
measured which will be base on the responses made over respondents. There will be influence of
the open and closed questions which are included in the questionnaires (Pratt, 2016). The
research and surveys will be made over the accounting professionals in various organisation to
analyse their requirements, obstacles as well as helps in taking the adequate decision.
Ethical consideration
To conduct the research there has been inclusion of various references and authenticated
sources which will be cited in the texts. Therefore, not including references in the research will
be illegal as it reflects that all such data and research was copied from other sources. Thus, to
protect the researches and create the relatability of the such analysis there has been use of
reference lists which are listed below at the end of this research (Definition of Ethics in
Accounting, 2017). When doing all these, the researcher will have to comply with the ethical
codes of conduct that govern research activities. For instance, the confidentiality of the private
information provided by the respondents will be safeguarded. At the same time, the research will
not expose the participants to any dangers because it will be harm-free and concerned about their
safety.
Reliability and validity
The study over the current accounting scenarios was made which will be on the basis of
various statistical analysis and the surveys over accounting professionals with the help of
questionnaire and the SPSS analysis. All these are appropriate because they will help in the
generation of reliable and valid data (The Benefits of Accounting Ethics in the Modern World,
2017). Therefore, with the help of such authenticated data or informations the researchers will be
able to analyse the most relevant and lawful analysis over the issues.
Research limitations
There has been several obstacles or limitation while conducting the research. Thus, in
accordance with making surveys over the accounting professionals to analyse their requirements
and issues in presenting the financial disclosure, there has been no proper collection of all the
data as well as not every individual will be considers. Therefore, it can be said that there has
been fewer data collection. On the other side there has been no proper time was facilitated to
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researches if the time limited were exceeded than they will become able to make gather more
informations as well as make the most preferable researches.
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CHAPTER: 4 DATA ANALYSIS
To fetch the authenticated and accurate informations which are relevant with the
problems faced by accounting professionals in various organisations there has been analysis of
the data which are relevant with the operational activities in the business. Therefore, with the
help of such research the researchers will make a beneficial decision which in turn helps in
making the most proper analysis of the issues and suggest ways to over come the problems
(Gorgolewski and et.al., 2017). The increasing problems and digitation there has been reduction
in the theoretical method of resolving the accounting issues. Therefore, in this consideration the
researches has been made over the two methods such as Primary data collection and Secondary
data collection.
Primary data-collection:
This method denotes the most favourable and preferable technique which will help ion
making the adequate analysis over the primary data which are being received by the primary
sources. This method includes the technique on which the data will be collected such as
preparing questionnaire, direct interaction with the professional in the various business. These
research will be helpful in terms of setting the informations which are relevant with the actual
issues faced by professionals while presenting the financial disclosure. Therefore, on the basis of
collected data the researchers will help and facilitate the adequate reasons to solve such problems
(Schabenberger and Gotway, 2017). The most suitable and fruitful decision will improve the
accounting environment as well as enhances the importance of accounting in the premises. There
has been analysis on the basis of questionnaire over the 20 accounting professionals in various
organisations which includes the 7 most important issues.
Theme: 1 Influence of Ethics in accounting operations will be beneficial for the growth and
efficiency.
Answers Respondents Percentages
Yes 12 60.00%
No 8 40.00%
Total 20 100.00%
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